What is the difference between a corporation and a LLC?

The main difference between a corporation and a LLC in Texas is their structure and legal characteristics. A corporation is a business structure that is established as a separate legal entity with its own rights and liabilities that are distinct from those of its owners. This form of business allows for investors to share ownership and provide limited liability for all shareholders. A LLC is a business structure that combines aspects of both a corporation and a partnership. A LLC is established as a separate legal entity, but the profits and losses from the business are passed through to the LLC members, meaning that the members are personally responsible for the taxes associated with the business. Additionally, a LLC is not required to have a board of directors or officers, nor is it required to follow the same corporate governance guidelines that a corporation is. Overall, a corporation and LLC are both business structures recognized by the State of Texas, but they have different characteristics and advantages.

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What is the difference between a corporation and a LLC?

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