What’s the Difference Between an LLC and a Corporation?

LLCs and corporations are both common business entities and they both have a lot of similarities, but they are legally distinct and they operate differently. Corporations obtain a charter or articles of incorporation from the state and are governed by their directors. LLCs are formed by obtaining articles of formation. LLCs are more flexible and are often governed by their members. Both have company formalities that have to be followed but again, LLCs offer more flexibility in how they’re governed, especially if the LLC is owned by just a few people.