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
|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.
”Andrew Traub provided efficient and timely service that allowed us to set up operations quickly and correctly. His on-going guidance was extremely helpful and we appreciated particularly his rapid responses to queries (both on-line and by phone). We look forward to a long and productive professional relationship with him. ”partnerHoya Partners LLC
”Hello, Great Registered Agent! Replies to all of my inquiries promptly.”K. ElemamTour Egypt
”Andrew Traub, from The Traub Law Office, has been a very responsive to our inquiries. As a registered agent, the company has provided constant communication with our company. The company’s reputation is outstanding and they have so far been a pleasure to work with. ”Reuben IbanezKawali Restaurant
”The Traub Law Office has been very responsive to requests by us, has been very timely with getting us copies of notices that may be sent to him and is most pleasant to work with. I enjoy reading the articles and e-books that he sends my way.”user
"Andrew, you please me to no end. Thank you for the stellar service. I spent probably four hours researching registered agents. I knew what they were, as I've formed three companies here in Delaware. But I needed a Texas registered agent. So I started looking and comparing. Andrew, it was... read moreStephen Worden
”We couldn’t be happier with Mr. Traub’s services. We are located in Michigan and have several companies in Texas that required a local registered agent. Mr. Traub has exceeded our expectations. I can highly recommend him. ”Heather DrouinEenhoorn LLC
”services excellent”N. ReyesREYAM INC.
I was pleased with the service I received from Texas Registered Agent Traub Law Office, P.C. I set up a company 15 years ago, didn't do anything with it, and didn't think about registered agents. The amount of mail I received, and continue to receive at home is one reason... read morePatrick NorrisLets Talk Common Sense LLC
”Since it has been uneventful it is great!”C. BarberWillaKenzie Estate, Inc.
”’The Traub Law Office’ provides an excellent ’Registered Agent Service’ and I would recommend their service to anyone forming a business entity in Texas. They are always helpful and furnish a lot of the best information in a timely way regarding your entity when available. The annual rate was also... read moreD. Lacy IIITexas Property Tax Appeals, LLC
”So far I have been very pleased with the service provided by your law firm.”L. Srubasmbq food concepts, inc
”I was impressed with how much additional information he provided to help me with my business. Thank you!”H. Ralston100th Monkey Mushroom Farm
”The Texas Registered Agents services have been excellent, kind, prompt, and very resourceful. Thank you for all your help.”d. padillaATX CINEMA LLC
”Andy Traub Law Office has provided excellent information and customer service.”Mary KrombackIRI West, LLC
”I have enjoyed the messages and the interesting info sent to us by our registered agent. The previous agent I had never kept in touch nor did he tell us when he was no longer going to be our registered agent. We found out the hard way.” It is a... read moreS. LindsaySmithco Construction, Inc.