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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 the amount of formal structure and legal requirements that is needed. LLCs are considered to be pass-through entities, meaning that any profits or losses are passed through to the personal income tax of the owners, while corporations are taxed separately from the owners and may have additional formal requirements in terms of board of directors, separation of powers, ownership, and shareholder rights and obligations. Additionally, corporations generally issue shares of stock as a form of ownership, while LLCs do not typically issue stock.