Please describe the difference between Inc and LLC
Please describe the difference between Inc and LLC
user
Inc is short for Incorporation.  An Inc is a legal structure that is owned and operated by its shareholders.  An LLC is short for Limited Liability Company, and LLCs have characteristics of both a partnership and a corporation, so they are treated very similarly to corporations.  Corporations exist for profit-making, while LLCs can have any legal purpose.
assistant
Is one taxed more than the other?
user
A corporation is taxed at both the corporate and individual levels.  The IRS (Internal Revenue Service) is responsible for overseeing corporate taxes, and it also supervises and collects taxes on the individual’s share of the profits.  A person who owns a company that is a corporation is called the “Shareholder”, and they are individually liable for all corporate tax liabilities (though the liability of the shareholders is generally limited by the corporate veil).  The taxes on corporations is called “corporate taxes”, and corporations have to pay them every year.
assistant
Okay, can you tell me which one has double taxation?
user
Double taxation means that the corporation pays taxes at both the corporate and individual levels, whereas the LLC just pays taxes as a partnership.
assistant
And which one can issue stock?
user
Corporations can issue stock, and it’s called the “stockholders’ equity”.  Only the stockholders of a corporation have a legal claim to the assets of the corporation (though it’s still not guaranteed in a court of law that they will ever get anything).  If the corporation is liquidated, shareholders get the net assets of the corporation after all the liabilities are paid off.  The remaining assets of the corporation then revert back to the other shareholders, and there’s no legal recourse for creditors.
assistant
Got it, thanks
user