Corporations and limited liability companies (LLCs) are similar in a number of ways as they both are a type of business organization that is typically considered to be a separate entity from the individuals that formed the organization. However, corporations (incorporated businesses) and LLCs are actually very different as the owners of a corporation (shareholders) will typically have rights and responsibilities that are very different from the rights and responsibilities of the owners of an LLC (members).
Liability
The liability of a corporate shareholder is typically limited to the amount that she invested, but an LLC member may be held liable for more in some cases.
Management
A corporation is required to have a board of directors elected by the corporation's shareholders while an LLC may be managed in any way that the members deem fit.
Recordkeeping
A corporation is required to record meeting minutes, record corporate resolutions and record some other similar administrative activities that an LLC is not required to record.
Taxes
An LLC can choose to file its taxes as a sole proprietorship, a partnership or a corporation. A corporation, on the other hand, must file as a corporation.
Time Frame
A corporation will exist until the directors, shareholders and/or owners choose to dissolve it, but an LLC usually only exists until the death or resignation of a single LLC member.
