What is the difference between a Corporation, Company, LLC, and Sole Proprietor?

  • A Limited Liability Company Or LLC is a legal entity formed at the state level. An LLC exists separately from its owners—known as members. However, members are not personally responsible for business debts and liabilities. Instead, the LLC is responsible.
  • A Sole Proprietorship is an unincorporated business owned and run by one person. This option is the simplest, no muss, no fuss structure out there. You are entitled to all the profits of the business. However, unlike an LLC, you are also responsible for all of the liability.
  • A Corporation is a company that is related to larger businesses and entities. There is no single owner, the shareholders are the owners.
  • A Company is a business related to a small business or entity. The owners of a company are its members.

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