When you’re starting a business in the USA, you will need to determine the right business structure for you. The two most common are Limited Liability Company (LLC) and Corporation (Inc.). Normally for small businesses, the simplest option will be to register as an LLC.
-The biggest difference between a Corporation and an LLC is that an LLC is owned by one or more individuals and a Corporation is owned by its shareholders.
-Corporations are preferred by outside Investors / Venture Capitalists since there is a wider ownership of the corporation through stock.
-LLCs are simpler to setup and maintain for smaller businesses.
-C-Corporations require double taxation of corporate profits.
-C-Corporations must hold annual meetings and record the minutes.
Yes, you don’t need either to go into business or start your company. However both a Corporation and LLC helps shield you from personal liability and usually offers tax advantages.