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In Business / College | 2025-07-03

Which of the following is a key difference between a limited liability corporation and a C corporation?

A. Liability of stockholders
B. Difficulty to form
C. Payment of income taxes
D. Life of the entity

Asked by ryleeaveritte

Answer (2)

The key difference between a Limited Liability Corporation (LLC) and a C Corporation is in how they are taxed. An LLC typically enjoys pass-through taxation, while a C Corporation is subject to double taxation. Additionally, LLCs are generally easier to form compared to C Corporations.
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Answered by Anonymous | 2025-07-04

The key differences between a Limited Liability Corporation (LLC) and a C Corporation include liability for stockholders, payment of income taxes, and the difficulty of formation. An LLC typically enjoys pass-through taxation and simpler operational requirements compared to a C Corporation, which faces double taxation and more regulatory obligations. The two structures also differ in terms of the longevity of the business entity, with C Corporations generally having perpetual existence. ;

Answered by GinnyAnswer | 2025-07-04

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