What is the difference between a corporation and a limited liability company (LLC)?
In South Carolina, the difference between a corporation and a limited liability company (LLC) is significant. A corporation is a legal entity that can be organized and operated for profit-making. It is established by state law and has its own identity apart from its owners, known as shareholders. The shareholders typically own the company, and the corporation is managed by directors and officers who are elected by the shareholders. Additionally, a corporation or LLC may be owned by one, two, or more owners. A limited liability company (LLC) is a type of business structure that provides limited personal liability for its owners. It is a business structure that combines the flexibility of a partnership with the limited liability protection of a corporation. The LLC is owned by members, not shareholders, and the members have limited liability for the debts and obligations of the company. Unlike a corporation, an LLC does not have directors and officers. Instead, the LLC is managed by one or more members elected by the members. Therefore, the main difference between a corporation and an LLC is that a corporation has shareholders and is managed by directors and officers, while an LLC is owned by members and managed by its members. Additionally, a corporation must hold regular meetings and follow strict record-keeping, while an LLC has more flexibility in its management structure and less record-keeping requirements.
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