What is the difference between a corporation and a limited liability company (LLC)?
A corporation and a limited liability company (LLC) are two different types of business entities that offer their owners particular types of protection from liability and taxation. In Oklahoma, a corporation and an LLC are both established by filing articles of organization with the Oklahoma Secretary of State. A corporation is an entity that is separate and distinct from its owners and creates an entity with a perpetual life; meaning it exists beyond any of the incorporators. Owners of a corporation are called shareholders, and they are granted shares of stock to signify ownership. A corporation is taxed separately from its owners, and shareholders have limited liability protection, meaning they are only responsible for the amount of money they invested into the corporation. On the other hand, an LLC is a business structure that combines aspects of both a corporation and a partnership. LLCs are designed to provide owners with limited liability protection while also taking advantage of the pass-through taxation like a partnership. Unlike a corporation, LLCs can have an unlimited number of members, and they are not required to have share certificates. In Oklahoma, both a corporation and an LLC offer their members protection from personal liability and certain tax advantages. However, the structure, tax treatment, and liability protection are different for each type of entity. It is important to consider which entity is best for your business before making any decisions.
Related FAQs
What are the rights of shareholders?What is the purpose of a trademark?
What are the legal requirements for setting up a business in another state?
What are the requirements for issuing corporate bonds?
What are the legal requirements for a merger or acquisition?
What is the purpose of corporate governance?
What is business law?
What is the difference between a partnership and a joint venture?
What are the legal requirements for setting up a business in a foreign country?
What is the purpose of corporate governance?
Related Blog Posts
Understanding Business Law: What Every Business Needs to Know - July 31, 20237 Key Aspects of Business Law Every Entrepreneur Should Be Aware Of - August 7, 2023
The Essential Elements of Business Contracts and Agreements - August 14, 2023
5 Questions Every Business Should Ask Before Starting a Partnership - August 21, 2023
What You Must Know About Company Structure and Formation - August 28, 2023