One of the tax benefits of an LLC is that it allows pass-through taxation, which means that the business is not taxed. The taxes are passed on to the LLC's members, who only pay taxes on their part of the LLC's profits on their tax returns at their individual tax rate. By contrast, C corporations face double taxation, which means that the corporation pays taxes on business income, and shareholders pay taxes on the distributions they receive from the corporation. This can result in significantly more money being paid in taxes under a C Corporation than an LLC.