A Limited Liability Company (LLC) is a business structure that provides the limited liability of a corporation, but with fewer formalities and requirements. An LLC is formed by filing documents with the state side, whereas a corporation requires more formal steps, such as issuing stock and appointing directors and officers. LLCs are not subject to double taxation, meaning that profits are not taxed twice, as is the case for corporations. LLC members are not personally liable for the debts and obligations of the business, which provides protection for the members’ personal assets.
In contrast, an Incorporated (Inc) business structure is a separate legal entity, meaning it has the same legal rights and responsibilities as an individual. Incorporation requires filing documents with the state side, issuing stock, and appointing officers. Corporations are subject to double taxation in the US, meaning that profits are taxed both at the corporate level and at the shareholder level. Additionally, shareholders of a corporation are personally liable of the business,