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Corporation vs. LLC

What Separates the LLC and the Corporation?

ALTON assists its clients in setting up Limited Liability Companies (LLCs) and Corporations. Which of the two types of companies is the best to incorporate? A general answer to this question is certainly not possible. The selection of the appropriate legal form depends on the individual start-up project or projects. To provide a basis for a good decision, for comparison, we consider here again, by comparison, the aspects of both types. On its own, those listed on the "Advantages and Disadvantages" page are provided to give entrepreneurs some of the individual characteristics. 


 

Corporation

LLC

Organs of the Enterprise:

Board of Directors, 
Executive Officers, 
Shareholder Meeting

optionally Member-Meeting

Formation with a single person possible:

Yes

Yes

Comparable with:

Foreign Corporation

Foreign Limited Liability Company

Capable of Action in foreign country: 

Yes

Yes

Company is a:

Corporate enterprise

Sole proprietorship or corporate enterprise

Enduration of company on absense of a member:

Yes 

Only if agreed on member agreement

Acquisition of bonded capital:

Possible through issuance of shares

Possible through issuance of member certificates

Limitation of liability for entrepreneur:

Yes

Yes

Verifiable share capital:

Not essential

Not essential

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Ratings: 4.5 of 5 | 839 vote(s)

Testimonials

When setting up business operations in the U.S. initially we had many open questions and uncertainties. We not only saved the high cost of a specialized lawyer, with ALTON LLC we found an experienced, and German-speaking, partner to not only found our company but also for consulting advice as well as for all our necessary office services such as postal services, telephone and fax services, and much more - and all to our complete satisfaction. - Markus Meixner (Telecommunications Software GmbH)

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