What is the difference between a corporation and a LLC?

The difference between a corporation and a Limited Liability Company (LLC) is an important distinction for businesses in Nebraska. A corporation is a separate legal entity from its owners, meaning the corporation conducts business and holds assets separate from its individual owners. Corporations also have perpetual existence, meaning the entity continues to exist even if ownership and/or shareholders change. Corporations can issue stock, and owners of stock (i.e. shareholders) have limited liability and are not personally responsible for the debts of the corporation. A LLC is a separate legal entity from its owners, and, like corporations, LLCs can issue stock and LLC owners (i.e. members) have limited liability and are not personally responsible for the debts of the LLC. There are two key differences between a corporation and an LLC. The first is that LLCs are "pass-through" entities for taxation purposes, meaning the LLC itself does not pay taxes on profits, and the profits of the LLC are "passed-through" to the individual members of the LLC to pay taxes on them. The second difference is that LLCs do not have perpetual existence, meaning the LLC will cease to exist if ownership and/or members change.

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What is the difference between a corporation and a LLC?

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