| Comparison | LLC | Corporation (C-Corp) |
|---|---|---|
| Formation Cost | Lower ($299+) | Higher (Contact Us) |
| Tax Structure | Pass-through | Corporate + dividend tax (double taxation) |
| Management | Simple (no board required) | Complex (board, meetings, minutes) |
| Owner Title | Member | Shareholder |
| Governing Doc | Operating Agreement | Bylaws |
| Foreign Owners | O | O (C-Corp only) |
| Stock Issuance | X | O |
| Fundraising | Limited | Excellent (VC preferred) |
| Annual Maint. | Simple (varies by state) | Complex (meetings, minutes, etc.) |
For detailed cost information, visit our pricing page.
Recommended for Canadian Residents
Choose LLC If
- -Small business / solo operation
- -E-commerce (Amazon, Shopify)
- -Freelancing / consulting
- -Real estate investment
- -Need flexible tax structure
Choose Corporation If
- -Planning VC/angel investment
- -Need to issue stock options
- -Long-term IPO goal
- -Partnership with large U.S. companies
- -Need formal governance structure
What About S-Corp?
S-Corp status is only available to U.S. citizens and permanent residents. Canadian residents (non-U.S. persons) are not eligible as S-Corp shareholders. Choose LLC or C-Corp instead.
Tax Comparison (Canadian Residents)
For Canadian residents operating a U.S. business, LLC pass-through income may need to be reported as income in Canada. C-Corps allow separation of corporate income and dividends for tax planning. Always consult with tax professionals in both countries for your specific situation.
Conclusion
For most Canadian entrepreneurs, LLC is the best choice. It's simple to manage, cost-effective, and offers flexible tax treatment. Consider C-Corp if seeking investment. Explore our LLC formation service or Corporation formation service, or contact us for a free consultation if you're unsure.