legal entities

CORPORATION

An independent, legal entity that is separate from personal assets

A C corporation is the most common kind, and it is often complicated to set up

Profits can be taxed twice: when made and when dividends are paid

LIMITED LIABILITY COMPANY (LLC)

LLCs are made up of one or more members

Offers liability protection

When it comes to taxes, members can choose to treat the company as a corporation or a pass-through entity

Incorporating your business is one of the best ways you can protect your personal assets. A corporation can own property, carry on business, incur liabilities, and sue or be sued. As a separate legal entity, a corporation is responsible for its own debts.