Corporation vs LLC in Texas

Want to know about the difference between a corporation vs LLC in Texas (as well as sole proprietorship)?  This table will hopefully make it clear.

	Sole Proprietorship	C Corp	S Corp	Limited Liability Company (LLC)
Formation Requirements & Costs	None	Must file with state, state specific filing fee required	Same as C Corp + file with IRS	Must file with state, state specific filing fee required
Personal Liability	Unlimited liability	Shareholders are not typically held liable for the acts of the company or its agents	Same as C Corp	Members are not typically held liable for the acts of the company or its agents
Administrative Requirements	Relatively Few Requirements	Election of board of directors/officers, annual meetings, and annual report filing requirements	Same as C Corp	Relatively Few Requirements
Management	Full Control	Shareholders elect directors who manage business activities	Same as C Corp	Members can set up structure as they choose
Term	Terminated when proprietor ceases doing business or upon death	Perpetual: can extend past death or withdrawal of shareholders	Same as C Corp	May be perpetual
Taxation	Entity not taxable.	Taxed at the corporate rate.	No tax at the entity level. Income passed through to members.	No tax at the entity level. Income passed through to members.
Double Taxation	No	Yes, taxed at corporate level and then again if distributed to shareholders in the form of dividends	No	No
Self-employment Tax	Subject to self employment tax	Salary subject to self employment tax	Salary subject to self employment tax, but shareholder distributions are not subject to employment tax	Salary subject to self employment tax
Pass Through Tax Treatment	Yes	No	Yes	Yes
Tax Forms	1040	1120	1120S + K-1 for shareholders	1040 or 1065 with K-1 for members
Transferability of Interest	Must sell business	Shares of stock are easily transferred (subject to securities laws)	Must observe IRS regulations on who can own stock	Possibly, depending on restrictions outlined in the operating agreement
Raising Capital	Individual provides capital.	Shares of stock are sold to raise capital (securities laws apply)	Shares of stock are sold with more restrictions than C Corp	May sell interests, but subject to operating agreement (securities laws may also apply).
Ease of Operation	Easiest	Must have annual meetings, Board of Directors meetings, corporate minutes, and stockholder meetings.	Same as C Corp	Easy
Registered Agent	Not Required	Registered Agent required	Registered Agent required	Registered Agent required

Hopefully this table showing the difference between corporation vs LLC in Texas will help guide you in choosing which entity is right for you.