While an LLC is not a corporation, it's nonetheless a very popular business entity type, particularly among small businesses. The owners of the corporation are known as the "shareholders." The management of the day-to-day operations and major decision-making functions of the corporation is left in the board of directors' hands.
Corporations may be comprised of a single individual or hundreds-even thousands-of people. Structure and Ownership Features of Corporations and LLCsĪ corporation is generally classified as a number of individuals authorized by a particular state's laws to transact business as a single legal entity. Understanding the similarities and differences between incorporating and forming an LLC will allow you to make a sound business decision that suits your needs and goals. The decision to incorporate or form a limited liability company (LLC) often depends on your business strategy and objectives, anticipated size of the business, opportunities for growth and expansion, annual reporting requirements, preferred taxation structure, desire for limited personal liability, and other significant factors.
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