Pass-Through LLC vs. Corporation (with employees or without):
Let's start with definitions first and foremost:
A Pass-Through LLC (Limited Liability Company) is a business structure where profits and losses pass through to the owners' personal tax returns. This means the business itself doesn't pay taxes; instead, the owners report business income and losses on their individual tax returns.
A Corporation can be structured in different ways, including as an S Corporation or a C Corporation. Both types of corporations offer liability protection to their owners, but they differ in terms of taxation and reporting requirements. An S Corporation is a pass-through entity like an LLC, whereas a C Corporation is taxed separately from its owners.
