What are the differences between a corporation and an LLC?

A corporation and an LLC (Limited Liability Company) are legal entities that offer asset protection in Tennessee. Both are entities that are separate and distinct from its owners. Although they have similar features, there are several differences between the two. A corporation is a legal entity that is owned by shareholders. It is a separate legal entity from its owners, which means that the owners are not personally liable for debts and obligations incurred by the corporation. The owners can transfer ownership of the corporation from one person to another easily according to the rules and regulations of the state. On the other hand, an LLC is a business entity that is owned by its members. An LLC is not a separate legal entity from its owners; instead, the members are directly liable for company debts and obligations. Unlike a corporation, the owners of an LLC cannot easily transfer ownership of the company to another person. Both types of entities offer asset protection in Tennessee. With either type of legal entity, the owners receive limited liability protection from personal debts and obligations of the entity. This means that the owners are protected from having their personal assets seized to cover any debts or obligations incurred by the entity.

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