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

In Georgia, the main difference between a corporation and a limited liability company (LLC) is the way they are structured and taxed. A corporation is a legal entity created by a group of shareholders who all have a vested ownership interest in the company. A corporation is treated as a separate legal entity, so it can own property, enter into contracts, and pay taxes. It also offers shareholders limited liability protection, meaning that shareholders are not personally responsible for the company’s debts. A limited liability company (LLC) is a business entity created by one or more individuals or entities. It is legally separate from its owners, allowing them to limit their personal liability for business debts or lawsuits. LLCs also offer members flexibility in terms of how the company is managed. LLCs are easier to form than corporations and are often treated more favorably for tax purposes. The differences between a corporation and LLC really come down to liability protection, taxes, and formation. Generally speaking, corporations provide more protection from liability while LLCs provide greater flexibility and more favorable tax treatment. When choosing the type of business entity to form, always consult with an experienced business formation lawyer to ensure that your business will be structured and taxed in the most advantageous way.

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

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