What is the difference between a corporation and an LLC?

Both a corporation and an LLC are separate legal entities and provide protection to the owners from personal liability. A corporation has a perpetual life, whereas an LLC is usually dissolved when the members die. Corporations are required to keep formal minutes, have meetings, and record resolutions. The LLC business structure does not require any corporate minutes or resolutions and is easier to operate. An LLC has greater flexibility in management and allocation of profits and losses. The corporation (C corporation) is essentially taxed twice; once on its profits and again shareholders are taxed on their personal income at the time they receive dividends (unless the corporation elects to be treated as a S corporation). An LLC is a flow through entity, it does not pay corporate taxes on its profits, but business profits, losses and expenses flow through the LLC to the individual owners who pay personal taxes (unless an LLC elects to be treated as a C corporation).