One question I am often asked is what is the difference between a S-Corporation (a corporation that elects to be taxed as a partnership, otherwise known as S-Corp) and a LLC? There are a few major differences that may be able to help you select the appropriate entity for your business. Please remember that this advice is for people starting businesses in Texas only. 1. Taxation. Both LLCs and S-corps receive "pass-through tax status," meaning the entities are not taxed at a c