Why is LLC Better?
An LLC is better compared to an S corporation because of the fact that S corporations have more limited liabilities and restrictions. Hence this is not to imply that LLC could be better in all circumstances; of course there are also instances which make S corporation works best. In fact LLC can probably be treated as an S corporation.
This is especially if it meets the statutory requirements for an S corporation rather than to an LLC. If a certain corporation does not have more than a hundred stockholders and they have stock holders that are from US only then it can be converted to an S corporation. Thu if an LLC only have one class of stocks as well as it profits and loses are usually allocated to shareholders proportionately to every shareholders then it is also one major ground for it to be turn to an S corporation.
However an LLC is better than S corporation because it is more flexible. IT can acquire more than a hundred stockholders from across the globe. This only means that if you are running an LLC then you can probably have your business or corporation across the globe. It is because you can also acquire investors from various countries. LLC also have the opportunity to create an international company which can market the products and services that they have in the global market.
LLC is a widely known business structure which is accessible in each state. This is exactly the reason they can acquire more investors from different countries across the globe. It definitely does not have more restrictions compared to S corporation making this business structure easily expand business. In fact most investors choose to invest in an LLC structured corporation especially if they have plans to have business across the globe.