What Is an S Corporation Tax Designation?
Posted: Sat Jul 05, 2025 10:21 am
Whereas CORPs get to bypass double taxation, because choosing the S-Corp designation makes you exempt from federal corporate income tax. To learn more, read S-Corporation Advantages & Disadvantages.
There is quite a lot of confusion around the word ‘incorporate’. Some resources use it when referring to both LLCs and CORPs. But although an LLC enjoys some of the benefits of a CORP, an LLC is not whatsapp data incorporated. Let’s summarize the differences:
Raising Funds — corporate entities can raise capital by issuing shares, LLCs can’t. Ownership & Management — LLCs have members, and the option of either being member-managed or choosing a manager. CORPs have shareholders, and must elect a Board of Directors as well as officers.
Also note that an LLC is not actually considered a separate entity even though it’s treated as one in some ways. Once the owner(s) die, the LLC no longer exists. Whereas an incorporated entity continues regardless of ownership and membership changes, because it’s entirely a separate legal entity.
There is quite a lot of confusion around the word ‘incorporate’. Some resources use it when referring to both LLCs and CORPs. But although an LLC enjoys some of the benefits of a CORP, an LLC is not whatsapp data incorporated. Let’s summarize the differences:
Raising Funds — corporate entities can raise capital by issuing shares, LLCs can’t. Ownership & Management — LLCs have members, and the option of either being member-managed or choosing a manager. CORPs have shareholders, and must elect a Board of Directors as well as officers.
Also note that an LLC is not actually considered a separate entity even though it’s treated as one in some ways. Once the owner(s) die, the LLC no longer exists. Whereas an incorporated entity continues regardless of ownership and membership changes, because it’s entirely a separate legal entity.