What's the difference between an LLC and Corporation in California?

# LLC vs Corporation in California

## Key Differences:

### Limited Liability Company (LLC)
**Pros:**
- Flexible management structure
- Pass-through taxation (avoid double taxation)
- Fewer formalities and paperwork
- Members not personally liable

**Cons:**
- $800 annual franchise tax (minimum)
- Additional gross receipts tax
- Limited life span
- Cannot go public

### Corporation (C-Corp or S-Corp)
**Pros:**
- Unlimited growth potential
- Can issue stock
- Perpetual existence
- Better for raising capital

**Cons:**
- Double taxation (C-Corp)
- More regulations and formalities
- Board of directors required
- $800 minimum franchise tax

## Formation Costs:
- **LLC**: $70 filing fee + $800 franchise tax
- **Corporation**: $100 filing fee + $800 franchise tax

## Best For:
- **LLC**: Small businesses, professional services, real estate
- **Corporation**: High-growth startups, businesses seeking investors