Legal Question in Business Law in Florida

What is the tax difference between an LLC and a "C" corporation?

What is the tax difference between an LLC and a "C" corporation?

A "C" corporation is taxed at the federal level and profits are either retained by the corporation or distributed to the shareholders. A profit distribution is called issuing a dividend. These profits are then taxed as income in the stockholder's personal taxes.

With an LLC, you have the option of how you will be taxed. The Internal Revenue Code provides three choices of taxation: Corporate taxation (like a general corporation), Partnership taxation (like an "S" corporation), or "pass through" personal taxation (like a sole proprietorship).