Comparative table Corporations and LLC

C Corporacion S Corporacion LLC
Protection of personal responsibility
 Shareholders are not normally responsible for the acts of the entity Shareholders are not normally responsible for the acts of the entity Members are not normally liable for the acts of the entity
Administrative
Requirements		 Appoint Board and this means the Chairperson, annual meetings and presentation of annual report are required. Appoint Board and this means the Chairperson, annual meetings and presentation of annual report are required. Few requirements, depending on the state. Define who are limited partners and general partners
Administration The President bears the legal representation of the entity The President bears the legal representation of the entity The managing partners bear the legal representation of the entity
Duration Perpetual: can extend after death or withdrawal of shareholders Perpetual: can extend after death or withdrawal of shareholders Perpetual, unless the state requires fixed amount of time
Tributación Taxed at the entity level and is subject to double taxation and dividends are taxed at the individual level if distributed to shareholders No tax on the entity level. The income is taxed directly to the shareholders even if you do receive a distribution No tax on the entity level. The income is taxed directly passed to members even if you do receive a distribution
Tax employment
 Wages subject to employment tax, but dividends paid to shareholders are not subject to employment tax Wages subject to employment tax, but dividends paid to shareholders are not subject to employment tax The managing partners individuals often receive salaries. Their remuneration is considered as labor income
Annual Statement of income tax
 Income and expenses on Form 1120

Expires March 15 for entities with a fiscal year calendar 		Income and expenses on Form 1120 S

Expires March 15 of each year

Report distribution of benefits to shareholders on Schedule K-1 		Income on Form Form 1065 (partnership with at least 2 partners)

Expire April 15 of each year

Report distribution of benefits to the partners on Schedule K-1
Annual Renewal of the State commercial register
 Yes Yes Yes
Shareholder Type
 for shares for shares By participation fees or percentage
No residents of USA can be a shareholder / partners
 Yes No Yes
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