human
What is the difference between a corporation and a limited liability company?
assistant
The main difference between a corporation and a limited liability company (LLC) is the way in which the business is taxed. A corporation is taxed as its own separate legal entity and is subject to corporate income tax. An LLC is a pass-through entity, meaning that the LLC itself does not pay taxes on its income; instead, the LLC's profits and losses are "passed through" to the owners, who report them on their personal tax returns. Additionally, corporations can issue stock and offer more protection to shareholders than an LLC does.