What is the difference between a corporation and a LLC?

A corporation and a LLC are two different types of business entities. A corporation is a business entity that is owned and operated by a group of shareholders, and managed by a board of directors. It is one of the oldest and most well-established type of business entity. It offers limited liability protection for its shareholders, meaning that in the event of a lawsuit or other financial liability, the shareholders are only responsible for the amount of money they have invested in the corporation. A LLC, or Limited Liability Company, is a newer type of business entity that also provides limited liability protection. This type of business is formed when two or more people come together to form a business, and the owners are not personally responsible for the debts or obligations of the business. LLCs are relatively easy to set up, and they are often used by small businesses because they offer more flexibility on taxation and other matters than a corporation does. In Delaware, the requirements of setting up either a corporation or a LLC are similar. Both types of business entity must register with the state, obtain a federal tax ID number, and file articles of organization or incorporation. LLCs must also put together an operating agreement outlining the rules and regulations of the LLC. When it comes to taxes, corporations are subject to the federal corporate income tax, while LLCs are often taxed as either a partnership or an S-corporation.

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What is the difference between a corporation and a LLC?

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