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What is the difference between an LLC and a Corporation?
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The main difference between an LLC and a Corporation is that LLCs are pass-through entities for tax purposes, which means that the profits and losses of the business are passed through to the members’ personal income tax, whereas Income from a Corporation is taxed at the corporate level. Also, LLCs do not require formal meetings and corporate minutes, and there’s less paperwork and fewer formalities, while Corporations do require formal meetings and have more stringent record keeping requirements. Additionally, Corporations are able to issue stock, while LLCs cannot.