What are the differences between a corporation and an LLC?

In Washington, corporations and limited liability companies (LLCs) are both types of businesses that are protected by asset protection laws. Although they are similar in many ways, there are some key differences between them. First, a corporation is a legal entity that is separate from its owners, meaning that the company is liable for any debts and lawsuits related to the business. This allows the owners to keep their personal property safe from legal action. An LLC, on the other hand, does not have the same legal separation, meaning that the owners are personally liable for any debts or lawsuits related to the business. Second, a corporation is required to have a board of directors and officers who are responsible for making decisions about the business. LLCs do not have such requirements, meaning that the owners can make decisions without involving a board of directors or officers. Third, a corporation must pay taxes on its profits, while an LLC can choose to be taxed as a corporation or as a partnership. This means that LLC owners can have more options when it comes to how they distribute the profits among themselves. Finally, corporations must follow certain rules and regulations, while LLCs are allowed more flexibility in terms of management and operations. This can be an advantage for smaller businesses that want to stay agile in their decision-making. In short, a corporation and an LLC are both businesses that are protected by asset protection laws in Washington. However, they have some key differences when it comes to legal separation, board of directors/officers, taxation, and flexibility.

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What are the differences between a corporation and an LLC?

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