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

A corporation and a limited liability company (LLC) are two distinct legal structures that provide different levels of legal protection for businesses in Hawaii. A corporation is the most common form of legal entity used in Hawaii. Corporations have distinct legal personalities separate from their owners, meaning that the owners and shareholders of a corporation are not personally responsible for any debts or liabilities associated with the corporation. This means that the owners are protected from any liabilities, obligations, and debts that the corporation may incur. On the other hand, limited liability companies (LLCs) are more flexible than corporations and are often chosen by small businesses and entrepreneurs in Hawaii. LLCs provide limited liability protection to its owners, just like corporations. However, LLCs also provide flexibility in terms of how ownership is divided, tax treatment, and other business operations. Additionally, LLCs do not need to hold annual meetings or file reports as companies incorporated as corporations do. In summary, the key difference between a corporation and an LLC is the level of legal protection they offer. Corporations tend to offer more legal protection to its shareholders than LLCs, while LLCs offer more flexibility in the way they are managed.

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

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