A limited liability company is identical to a Subchapter S corporation.

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A limited liability company (LLC) is a separate legal entity from its owners and provides limited liability protection to its members, but it is taxed differently than a Subchapter S corporation. A Subchapter S corporation is a type of corporation that has elected to be taxed as a pass-through entity, meaning that the company's income, deductions, and credits flow through to the individual shareholders' personal tax returns. While both LLCs and Subchapter S corporations offer liability protection to their owners, they have different tax structures and operational requirements.

A Limited Liability Company Is Identical to a Subchapter S