When choosing their legal structure, many new business owners ask, “What’s the difference between an LLC, an S corporation and a partnership?” First, let’s address the common root of confusion, which usually comes from using these terms to discuss a legal entity’s structure when you’...
Another key difference between corporations and professional corporations is only licensed professionals can be a part of a PC. Typically, the only professionals who may form a PC are those who must have some sort of state and/or federal license to practice their profession. These include engineer...
The primary difference between a partnership and an LLC is that an LLC separates the business assets of the company from the personal assets of the owners, insulating the owners from the LLC's debts and liabilities. Both LLCs and partnerships are allowed to pass through their profits, along w...
Even if a business venture only has a single owner/employee, it can still be beneficial to codify the relationship with an LLC operating agreement. Having an operating agreement establishes a legal boundary between the LLC and the owner, so that the owner is not held accountable for the LLC'...
The difference in liability protection is the single biggest difference between partnerships and LLCs. All LLCs have this protection, but only some types of partnerships do. Liability in Partnerships In a general partnership, each partner has personal liability for the debts of the partnership be...
LLP vs. LLC: Differences and How To Choose (2025) Learn the difference between an LLC and an LLP and how to choose the best structure for your business. On this page What is an LLP? What is an LLC? LLC vs. LLP differences LLC vs. LLP similarities What are the differences in managem...
Structural flexibility is another big difference between LLCs and limited partnership. An LLC can be operated with a single member, whereas a limited partnership needs at least two partners. If you are a sole business owner, structuring your business as an LLC instead of as a limited partnership...
What’s the difference between an LLC and a partnership? The main differences between an LLC and a partnership are the legal structure and liability. Some forms of partnerships are incorporated legal entities while others are not. Generally though, when referring to ageneral partnership, it’s a...
With that being said, let’s see the difference between an LLC and a corporation in detail. Limited Liability Company (LLC) An LLC is a hybrid business entity organized in the US under state laws. State laws governing the LLC are unique to each state. In Washington for instance, it is ...
Let's dive into the key similarities and differences between LLCs and corporations, exploring their unique benefits and drawbacks—essentially, the “LLC vs. inc." debate. By the end, you'll be better equipped to make an informed decision on the ideal business structure for your needs. ...