If you’re starting a business or restructuring one, you’ve probably heard of LLCs, S Corps, and C Corps. But knowing which structure is right for you depends entirely on your goals, your mindset, and your vision for the future.
This isn’t about what’s “cheapest” or what some coach told you in a YouTube video. This is about building a business that survives, scales, and attracts serious money.
Let’s break it down.
What Is an LLC (Limited Liability Company)?
A Limited Liability Company is one of the simplest business structures you can form in the U.S.
Pros:
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Simplicity. Easy to form and manage. No board of directors required.
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Pass-through taxation. Profits are taxed on your personal return—no corporate-level tax.
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Liability protection. Your personal assets are shielded from business lawsuits and debts.
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Flexible ownership. You can have one or multiple owners (called members).
Best for:
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Freelancers, consultants, and small business owners who want liability protection without corporate formalities.
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Professionals in high-risk fields like doctors, contractors, or real estate agents—where lawsuits are common.
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Side hustlers and service-based businesses not seeking outside investors.
But here’s the catch:
An LLC is not built for serious capital raising. Investors—especially institutional ones—don’t like LLCs because ownership and equity can be messy. You also can’t issue shares the way a corporation can.
LLCs are great for liability and tax simplicity—but not for scale.
What Is an S Corporation?
An S Corporation is a tax election, not a business entity type. You form an LLC or corporation, then file IRS Form 2553 to elect S-Corp status.
Pros:
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Pass-through taxation. Like an LLC, your income flows through to your personal return—avoiding double taxation.
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Payroll tax savings. You can pay yourself a “reasonable salary” and take the rest as distributions, saving on self-employment tax.
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Cleaner ownership. You issue shares and have a corporate structure.
Best for:
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Small business owners with consistent profits who want to save on taxes legally.
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U.S. citizens with fewer than 100 shareholders.
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People not planning to raise venture capital or go public.
But beware:
S Corps are limited:
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No foreign shareholders allowed.
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Only one class of stock.
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Strict shareholder limits.
So if your goal is to attract big capital, you’re better off with something else.
What Is a C Corporation?
Now we’re talking serious business.
A C Corporation is the default corporate structure in the U.S. It’s what Amazon, Apple, Tesla, and every company raising millions from venture capital firms is structured as.
Pros:
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Unlimited shareholders. Domestic or foreign—doesn’t matter.
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Multiple classes of stock. Great for fundraising and tiered ownership.
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Institutional investor-friendly. VC firms, banks, and angel investors prefer it.
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Corporate tax rates. You can retain earnings and grow at scale.
Best for:
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Founders looking to raise serious capital.
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Businesses planning to go public or exit.
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Entrepreneurs thinking long-term—not just tax savings.
And yes:
C-Corps can result in double taxation (once at the corporate level, then again on dividends). But guess what?
If you’re worried about paying taxes, your business probably isn’t making enough money.
Real businesses are built to grow—not hide from the IRS.
So… Which One Should You Choose?
It depends on what kind of entrepreneur you are:
| Structure | Best For | Goal | Capital Ready? |
|---|---|---|---|
| LLC | Freelancers, consultants, professionals | Simplicity & protection |  |
| S Corp | U.S. citizens with consistent income | Tax efficiency | |
| C Corp | Visionary founders & capital seekers | Growth, scale, and funding |  |
The Truth About Online Advice
If you’re structuring your business based on random Facebook groups, old YouTube videos, or advice from someone who isn’t even active online or running a company, you’re setting yourself up for failure.
Business is war—and the wrong structure can cost you millions in lost funding opportunities.
You need advice from people who are in the game, actively building, networking with banks, and working with real investors.
That’s why we created:
How To Structure Your Corporation To Attract Multi-Million Dollar Business Loans from Banks
We don’t sell coaching. We don’t hype up “aged” corporations or fake tax loopholes.
We show you step-by-step how to:
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Form the right entity, in the right state, with the right documentation
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Build a structure that banks respect
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Position your business to raise $500,000 to $5,000,000+ in capital
Final Thought
LLCs and S Corps serve their purpose—but if you’re serious about growth, funding, and creating a legacy company…
You need a C Corporation—and you need to structure it right from day one.
Let us help you do it right.
How To Structure Your Corporation To Attract Multi-Million Dollar Business Loans from Banks