Berkeley CSUA MOTD:Entry 21764
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2024/11/23 [General] UID:1000 Activity:popular
11/23   

2001/7/11 [Computer/SW/Languages/C_Cplusplus, Uncategorized/Profanity, Industry/Startup] UID:21764 Activity:nil
7/10    Found out my X-company is a "C corporation", not an LLC.  does this
        mean I'm up shit creek when they go bankrupt? - <DEAD>X-.com<DEAD> founder.
        \_ If they go bankrupt, they can't pay you.  What's wrong with that?
           \_ other way around, i'm worried that incurred debt could be
              charged to me.
        \_ http://4inc.com/compare.htm . Shouldn't you have asked all these
           questions of the attorney that helped you incorporate? --dim
                \_ each column contains the word "are not normally liable
                   for the debts of the corporation".  relax.
2024/11/23 [General] UID:1000 Activity:popular
11/23   

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Cache (2001 bytes)
4inc.com/compare.htm
S - Corporation C - Corporation Duration Often limited to a fixed amount of time Normally perpetual existence Normally perpetual existence Liability Members not normally liable for the debts of the LLC Shareholders are not normally liable for the debts of the corporation Shareholders are not normally liable for the debts of the corporation Simplicity of Operation Normally, less formality than is the case with corporations Normally more structured, requiring more meetings and (in some states) more reporting requirements. Normally more structured, requiring more meetings and (in some states) more reporting requirements. Management Can be structured for member management or manager management (more flexible) Corporations have centralized management through the board of directors (elected by the shareholders) and the officers (elected by the directors) Corporations have centralized management through the board of directors (elected by the shareholders) and the officers (elected by the directors) Taxation Can be structured so that there is no tax at the entity level, with income (or loss) passed through to the members No tax at entity level while the S corporation election is effective. Income (or loss) is passed through to the stockholders Corporation is a taxable entity, although the income which would normally be taxed at the corporate level can normally be paid out in salaries (and in other deductible ways) so that there is in fact no tax at the corporate level. Loss Passed Through Normally, yes Normally, yes Corporate losses are not deductible by shareholder Transferability of Interest Can be structured to permit or restrict, but normally structured to restrict Normally, yes, but care must be taken not to destroy the S Corporation election Normally fully transferable Raising Capital Neither LLC nor S Corporation normally appropriate for public (or would-be public) companies. Neither LLC nor S Corporation normally appropriate for public (or would-be public) companies.