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Corporations and Limited Liability Companies

Separate Legal Entities

Corporations and limited liability companies (LLCs) are separate legal entities that provide owners with liability protection. They differ in ownership structure, taxation, management, and legal formalities.

  • Owners generally enjoy limited personal liability.
  • The business continues despite changes in ownership, subject to governing law.
  • Formal organizational requirements vary by entity type.
Summary
Corporations and LLCs offer liability protection while supporting business growth and investment.