What is the difference between Incorporation and L.L.C.?

Answer 1

One of the major differences is that a corporation has to have a board of directors and an LLC doesn't. In many states your must declare that your business is an LLC with anyone you do business with or you will be held personally liable. This makes it very impractical when you deal with a large number of customers.

If you planning on starting a business make sure you pick the right one of it could prove very costly. The following website goes into more detail.

Answer 2

"Inc." means either a C corporation or an S corporation, which are two very different things.

C corps have stock, possibly more than one class, and are taxed as a separate entity.

S corps have stock, but only one class, and are not taxed; the shareholders are taxed. That's what it means to be a "pass through entity". They are a little cumbersome for small businesses.

LLC's are Limited Liability Companies. They have no stock, just "members" and "managers". Managers are Members that have authority to act on behalf of the corporation without a special vote. They are a pass through entity. They do not have to have more than one member.

For a sole proprietor, either an LLC or an S corp is good for limiting Liability, but an S corp is a lot more complicated to create, with no added benefit.

Answer 3

Limited Liability Company

S Type Corporation
C Type Corporation

it's a taxing issue