Comparison of LLC with Other Forms of Business

FACTOR	LIMITED LIABILITY COMPANY	C CORPORATION	S CORPORATION	GENERAL PARTNERSHIP	LIMITED PARTNERSHIP
Liability	Limited liability for members even if participate in management.	Limited Liability for shareholders even if participate in management	Limited Liability for shareholders even if participate in management	No Limited Liability; all Partners jointly & severally liable for all debts of business.	Limited Liability for limited partners who do not participate in management of business.
Management	By all members unless manager(s) appointed	By Board of Directors	By Board of Directors	By all Partners	By General Partner
Number of Members	No Maximum; requires at least two members	No Maximum	35 Maximum; only individuals; no corporations or trusts	No Maximum; requires at least two	No Maximum; requires at least two
Transferability of interests	Restricted; requires consent of at least majority of other members	No restrictions	No restrictions	Restricted unless authorized by partnership agreement	Restricted unless authorized by partnership agreement
Different Classes of Interests	Permitted	Permitted	Only One Class of Stock permitted	Permitted	Permitted
Federal Income Tax	None at LLC level	34% on corp. plus tax on all distributions to Shareholders	No Corporate level tax	None on Partnership	None on Partnership
State Income Tax	None at LLC level	4.8% on Corporation	No Corporate level tax	None at Partnership level	None at Partnership level
Franchise Tax	None	1/10 of 1% of Paid-in-Capitol	1/10 of 1% of Paid-in-Capitol	None	None
Filing Fees	$500 to organize	$100	$100	No filing fees required	$75