What is the difference between a corporation and a LLC?

A corporation and a LLC are both business entities, but there are several key differences between them. In a corporation, the business is owned by stockholders who have a financial stake in the company and have limited liability. Stockholders can vote on certain company decisions and have a say in the direction of the company, but they do not actually manage the company. The corporation has a board of directors who are responsible for decision making and managing the company. A LLC, or limited liability company, is owned by members who are not necessarily stockholders. The members can manage the company and have a say in how the company should be run, but they do not have the same legal liabilities as a corporation. Unlike a corporation, a LLC does not have to have a board of directors and the company is managed by the members themselves. Another difference between a corporation and a LLC is that a corporation is recognized by the state of California and is required to register with it, while a LLC is not. As a result, a corporation has to follow certain rules regarding taxes and other regulations, whereas a LLC does not have to do this. Finally, the taxes for a corporation and a LLC are different. A corporation is subject to double taxation, meaning that the business pays both corporate taxes and individual taxes, while a LLC is only subject to individual taxes. Overall, a corporation and a LLC are both business entities, but they differ in ownership, management, registration, and tax regulations.

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What is the difference between a corporation and a LLC?

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