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

A corporation and Limited Liability Company (LLC) are two different types of Business Formation Law in West Virginia. A corporation is the most common business form in West Virginia and offers the greatest level of protection from personal liability. A corporation is a separate entity from its owners and shareholders, allowing them to have no personal liability for corporate debts or legal actions. Corporations have roles such as Shareholders, Directors, and Officers, and the owners of the corporation are not responsible for the debts of the business. Corporations are also able to issue shares of stock as well as to issue dividends to its investors. On the other hand, a Limited Liability Company (LLC) is a much newer form of business formation in West Virginia. It is a combination of a partnership and a corporation, offering the benefits of both. LLCs provide the same level of protection from personal liability as a corporation, but without all the formalities. LLCs are owned by members, and the members are not personally responsible for the debts of the business. Unlike corporations, LLCs are not able to issue shares of stock and can only issue memberships. In conclusion, a corporation and a Limited Liability Company (LLC) are two different types of business formation in West Virginia. The main difference between them is that a corporation offers more protection from personal liability but requires more formalities, while an LLC offers similar protection without all the formalities.

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

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