What is The Difference Between An LLC And A Corporation?

And one of the initial questions you’ll certainly need to ask is, “What is an LLC, and how does it compare to a corp?”

As the owner of several businesses in the Los Angeles entertainment industry, I know from experience that you’ll have a quadrillion questions.

Then naturally, your next question will be, “So…which one should I set up?”

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)!

Now, before we look at some of the more important factors that differentiate the two, let me first answer the question of…

What is  an LLC?

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

What is a corporation?

Corporations are another business entity that also provides liability protection. But, they are set up a little differently from an LLC.

What are the differences between an LLC and a Corp?

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

Ownership

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.”

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