What is the difference between a corporation and a limited liability company (LLC)?
A corporation and a limited liability company (LLC) are two different kinds of business entities that are defined by business formation law in New Jersey. A corporation is a legal entity that is created to conduct business activities. It is owned by shareholders and is managed by its own board of directors. Corporations are subject to certain laws and regulations in New Jersey for the purpose of protecting the interests of shareholders and creditors. They must file documents such as Articles of Incorporation and follow certain procedures to register with the state. Corporations are also typically taxed separately from their owners. An LLC is a business entity that provides limited liability protection. This means that the owners of an LLC are not personally liable for any of the debts or obligations of the business. In New Jersey, LLCs are formed by filing articles of organization with the state. An LLC can also be managed by members or by one or more appointed managers, but the members have ultimate control over the business. The main difference between a corporation and LLC is that a corporation provides a higher level of legal protection for its owners, while LLCs provide a simpler structure that offers fewer regulatory requirements. Additionally, LLCs are typically more flexible than corporations and can be used to structure a variety of business activities.
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