If you’re starting a new company, you may be wondering what the difference is between a corporation and a limited liability company, and which one you should choose.
Corporation
A corporation is an independent legal entity. It has shareholders, and therefore personal control is limited. Generally, the owners (shareholders) of a corporation are not personally liable for debts of the corporation (limited liability). The structure of the company includes the shareholders (owners), Board of Directors, and Officers (i.e. President).
Limited Liability Company
A limited liability company (LLC) also offers limited personal liability for the owners, but the structure and administration of an LLC is less complicated. It has only members or managers.
There are other differences related to taxation, liability and governance, which should be discussed with an attorney for CPA.
Nicole Bolan, Attorney at Law
Blado Kiger Bolan, Tacoma, Wash.
