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What Is an LLC? Is It Different Than a Corporation? 

You’ve solidified your idea for a business, you have a business plan, and you are ready to get started. First, though, you need to make sure you are protected. 

What is an LLC?

An LLC, or limited liability company, is a legal business entity you form to protect your personal assets from liability.

What is a corporation?

Corporations are another business entity that also provides liability protection. But, they are set up a little differently from an LLC.

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What are the differences between an LLC and a Corp?

Ownership

An LLC is typically either owned by one person or a small group of co-founders.

Paperwork

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Generally speaking, LLCs indeed have less paperwork, particularly because it doesn’t have to hold “annual meetings” of the directors and take meeting minutes.

Tax Treatment

Federal Taxes

Just as independent contractor taxes are applied on the basis that this is personal income, the same status is relevant if you generate income from an LLC as a sole owner.

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