There are two types of business structures in the United States - corporations and LLCs.
A corporation is a separate entity from its owners, and it has its own set of rights and liabilities.
An LLC is a pass-through entity, which means that the profits and losses from the LLC pass through to the owners and are taxed on their individual tax returns.
The most important difference between an Inc. and an LLC is that only corporations can issue stock. This means that if you want to raise money for your business by selling shares of your company, you need to form a corporation.
LLCs can't issue stock, but they do have some other benefits - like limited liability for the owners, less paperwork than corporations, and provide valuable asset protection and are used in estate planning.
Published: Oct 14, 2022
Updated: Dec 8, 2023
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