An S corporation and an LLC (Limited Liability Company) are both types of business structures, but they have some key differences. An S corporation is a type of corporation that elects to be taxed under Subchapter S of the U.S. Internal Revenue Code. This allows the business to pass its income, losses, deductions, and credits through to its shareholders, who report this information on their personal tax returns. This means that the business itself does not pay taxes on its income, and the shareholders are taxed only on the distributions they receive. An LLC, on the other hand, is a type of business structure that offers personal liability protection to its owners, known as members. The profits and losses of an LLC are passed through to the members and reported on their personal tax returns, similar to an S corporation. However, unlike an S corporation, an LLC can have an unlimited number of members and can be managed by its members or by managers. Additionally, LLCs have more flexibility in terms of management structure, as they are not bound by corporate formalities such as holding regular meetings and maintaining corporate records.