What is the difference between a corporation and a LLC?

A corporation and a LLC (Limited Liability Company) are both legal entities that are recognized under Washington state law. However, there are several key differences between them. A corporation is a more formal business entity with stringent rules and regulations. It is managed by a board of directors, and has shareholders who have an ownership stake in the corporation. The shareholders are afforded limited liability protection and the corporation itself is taxed separately from the individuals associated with it. A LLC is a less formal business entity that is often used by small business owners or entrepreneurs. It is managed by its members and has pass-through taxation, meaning that the members are taxed personally on the profits that the LLC earns. It also offers its members limited liability protection, meaning that the members are not personally responsible for the debts or liabilities of the LLC. In summary, a corporation is a more formal business structure and offers shareholders limited liability protection and separate taxation. A LLC is a less formal entity and offers its members limited liability protection and pass-through taxation.

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What is the difference between a corporation and a LLC?

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