1. What is an LLC?
LLC stands for Limited Liability Company, which is a type of business entity in the USA. This type of business has the power to enter contracts, hire employees, buy things, sell things, borrow money, etc. An LLC limits liabilities (debts) to third parties to the amount of capital invested in the LLC. In other words, the individual owners of an LLC are not required to pay for company debts with their personal funds.
2. What is a Corporation?
A corporation, also known as ‘Inc.’, a ‘C Corporation’ or an ‘S Corporation’, is a type of business entity in the USA. This type of business has the power to enter contracts, hire employees, buy things, sell things, borrow money, etc. A corporation limits liabilities (debts) to third parties to the amount of capital invested in the corporation. In other words, the individual owners of a corporation are not required to pay for company debts with their personal funds.
3. What is the difference between an LLC and a Corporation?
The main difference between an LLC and a Corporation is related to the way the corporate books are managed. There are also fiscal differences between the two. To determine which to use, it is recommended that you visit with an immigration attorney who is experienced in creating companies in the USA.