What are the differences between a corporation and an LLC?
A corporation and an LLC (limited liability company) are two different types of business entities that can be used for asset protection in District of Columbia. Generally speaking, an LLC offers more protection from creditors than a corporation because its members are not usually responsible for the debts of the LLC. A corporation is a type of business entity that is separate from its owner, meaning that the corporation is its own legal entity, distinct from any individual owner. In the eyes of the law, a corporation is treated as a single legal entity, with limited liability for its owners, also known as shareholders. This means that the shareholders of a corporation are not responsible for any debts or losses incurred by the business. An LLC is another type of business entity that can be used in asset protection. An LLC is a legal entity distinct from its owners, known as members. It is a more flexible business structure than a corporation, and its members are not personally responsible for the debts of the LLC. This allows LLC members to protect their personal assets from potential lawsuits or creditors. As a result, an LLC can often be a better option for asset protection than a corporation. It is important to note, however, that asset protection laws can vary from state-to-state, and it is important to consult with a knowledgeable attorney to determine which business structure would be best for your asset protection needs in District of Columbia.
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