What is the difference between a Profit Corporation and a Limited Liability Company?
A Profit Corporation is an independent legal entity. It has shareholders, therefore personal control is limited. Generally, the owners (shareholders) of a corporation are not personally liable for debts of the corporation (limited liability). You have the classic structure with President, Vice-President, Secretary, Treasurer, and a Board of Directors. A Limited Liability Company (LLC) offers also limited personal liability, but the structure and administering of an LLC is less complicated. It has only members or managers. There are many other differences related to taxation, liability and governance. For more information about responsibilities, liability and taxing, please contact an attorney, CPA or accountant.
A Profit Corporation is an independent legal entity. It has shareholders, therefore personalcontrol is limited. Generally, the owners (shareholders) of a corporation are not personally liable for debts of the corporation(limited liability). You have the classic structure with President, Vice-President, Secretary, Treasurer, and a Board of Directors. A Limited Liability Company (LLC) offers also limited personal liability, but the structure and administeringof an LLC is less complicated. It has only members or managers.
Related Questions
- What is the filing fee to form a domestic or qualify a foreign profit corporation, limited liability company, limited partnership or registered limited liability company?
- What will my filing fee be to change a registered agent/registered office for a profit corporation, limited liability company, limited partnership?
- What is the difference between a Profit Corporation and a Limited Liability Company?
