The limited liability company differs from the C corporation in that the former avoids financial complications from double taxation.

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Limited liability companies (LLCs) are taxed as pass-through entities, meaning that the profits and losses are passed through to the owners and are only taxed once on their personal income tax returns. C corporations, on the other hand, are subject to double taxation, where the corporation is taxed on profits and then shareholders are taxed again on any dividends received.

The Limited Liability Company Differs from the C Corporation in That