Difference between limited liability company and a corporation

A limited liability company (LLC) and a corporation are two different types of business structures that offer certain legal and financial benefits to businesses. While both structures provide some level of protection for the owners of the business, there are several key differences between an LLC and a corporation, including:

1. Ownership: An LLC is owned by one or more individuals, known as members, while a corporation is owned by shareholders who hold shares of stock in the company.
2. Management: An LLC is typically managed by its members, who have the authority to make decisions and take actions on behalf of the business. In contrast, a corporation is typically managed by a board of directors, who are elected by the shareholders and are responsible for making major decisions on behalf of the company.
3. Liability: One of the key differences between an LLC and a corporation is the level of liability protection provided to the owners of the business. In an LLC, the members are typically not personally liable for the debts and obligations of the business, while in a corporation, the shareholders are typically not personally liable for the debts and obligations of the company.
4. Taxation: Another key difference between an LLC and a corporation is the way in which the business is taxed. An LLC is typically taxed as a pass-through entity, meaning that the business itself is not taxed, and the income and expenses of the business are passed through to the members, who report them on their personal tax returns. In contrast, a corporation is taxed as a separate entity, meaning that the business itself is taxed on its income and profits, and the shareholders are taxed on any dividends they receive from the company.