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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 |