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LLC and C-Corp Comparison

Law Office of David M. Goldman PLLC represents individuals and Florida Businesses in Jacksonville and the surrounding areas in Florida Business law and Florida Business Formation. Our Florida Business Attorneys and Florida Business Lawyers work with clients in to help them choose the correct entity to use when conducting business.

The Florida C-Corporation is similar to a member managed LLC in control, but is always better than a Florida C-Corporation in respect to the tax effects. A Florida C-Corp is taxed at the corporate level and then again at the individual level. This double taxation is a significant disadvantage of using a C-Corporation for your business entity.

If you select the default tax treatment for a Florida Limited Liability Company the members or owners are taxed the as if they had a General Partnership or Sole Proprietorship. That is the income of the LLC will "Pass Through" to the individual and they will be taxed as if they had earned the income themselves. With a Florida C-Corp, the individuals are taxed at the same levels on salary, but the distributions are not counted as ordinary income but as capital gains and thus do not have the same amounts of SSI and Medicaid deducted. The C-Corp also has a corporate level of taxation on the earnings of the company. In a C-Corporation it is possible to be taxed on salary, distributions, and corporate earnings. The taxes can be significantly higher than with a Limited Liability Company. In addition the owners of a Florida Limited Liability Company can elect to be taxed as an S-Corporation to further reduce the potential tax treatment of the entity.

While both the Florida LLC and the Florida C-Corporation offer protection of the owners' individual assets from liabilities of the business entity, only the Florida Limited Liability Company can protect the business ownership or stock in the C-Corp from creditors of the owners, shareholders. These protections are only available with the Florida LLC when it is properly structured to take advantage of the Florida Charging Order for its members.

Both the Florida Corporation and the Florida LLC require more formality a sole proprietorship but it generally amounts to no more than a few hours of time a year.

If you need help with starting or managing a Florida Business CONTACT our Florida Business Lawyers by email or call us at 904-685-1200 to discuss your situation today.

Client Reviews
★★★★★
"As a real estate agent, I have been involved with many property transactions where I needed a probate attorney to help facilitate the transaction. I have used the services of Mr. Goldman and his staff over the last several years and continue to use them on a regular basis. His office has been able to navigate the court system and help estates sell their property quickly and efficiently..." Michael Starling
★★★★★
"I've had Mr. Goldman do my entire estate planning as well as my gun trust. I highly recommend him and his firm. If you're planning a gun trust, trust no one else Mr. Goldman is one of if not the best versed on this topic." Howard
★★★★★
“Attorney Robert Wilbert of David M Goldman, PLLC, will be the first and only attorney I would ever recommend to a consumer in my position. Mr. Wilbert was professional, answered my numerous questions without hesitation, provided straightforward answers and options. He explained the process thoroughly. He was available to assist before and after the process to make sure all issues had been resolved…” Kameron Knowlton
★★★★★
“Great service is an understatement. We bought several properties that Mr. Goldman handled for his clients. The communication and explanation of everything was terrific. I would definitely recommend him for all of your real estate needs.” Kassandra
★★★★★
“After struggling with 2 probate cases prior to hiring attorney Goldman I was extremely apprehensive during the hiring phase. Not only did Attorney Goldman assure me they could take care of this his office was wonderful. Jennifer was assigned to my case and she was wonderful and were able to guide another probate case I had saving me additional time and frustration. Highly recommend this office.” Debbie