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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:YesYes
Comparable with:Foreign CorporationForeign Limited Liability Company
Capable of Action in foreign country: 
YesYes
Company is a:Corporate enterpriseSole 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 sharesPossible through issuance of member certificates
Limitation of liability for entrepreneur:YesYes
Verifiable share capital:Not essentialNot essential

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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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