What is the difference between a corporation and a limited liability company (LLC)?

In Alaska, the key difference between a corporation and a limited liability company (LLC) is in the way they are taxed and the amount of personal liability for the owners. A corporation is taxed as a separate entity, meaning it is taxed at its own rate, which is usually double the rate of an individual taxpayer, and its profits are taxed twice. Furthermore, shareholders of a corporation in Alaska will generally have limited liability, meaning they cannot be held personally accountable for liabilities or debts of the corporation. On the other hand, limited liability companies (LLCs) are not taxed as separate entities. All income earned by an LLC passes through to the members who file that income with their individual tax returns. This is often referred to as "pass-through taxation". Furthermore, owners of an LLC are not personally liable in Alaska for the liabilities and debts of the LLC. In summary, the key difference between corporations and limited liability companies in Alaska is the amount of taxation and personal liability. Corporations offer double taxation and limited liability, while LLCs offer pass-through taxation and limited liability.

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What is the difference between a corporation and a limited liability company (LLC)?

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