What Is an LLC? And How Is It Different Than a Corporation?

Most “movers and shakers” need to pick between establishing a corporation (aka Inc.) or a limited liability company (aka LLC).

This can be a tough decision, largely because it’s difficult to  understand the differences (let alone which might benefit you more)!

An LLC, or limited liability company, is a legal business entity you form to protect your personal assets from liability.

What is an LLC?

The other most common option is a corporation (aka a corp or Inc.).  Corporations are another business entity that also provides liability  protection.

What is a corporation?

Choosing between the two will depend on your business type and needs and your own liability and tax planning goals.

What are the differences between an LLC and a Corp?

An LLC is typically either owned by one person or a small group of  co-founders. But technically, an LLC doesn’t have “owners”; it has  “members.”


Meanwhile, an Inc. effectively belongs to the people who hold shares in  it, and the company management is accountable to those shareholders.


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