The primary difference between a corporation and llc is in how the organization is taxed. To understand this,you have to begin by recognizing that there are two completely different types of business structures. "Pass-through" businesses, like llc's, are those by which the profits or losses of the business pass directly through to the owners or shareholders. The taxes are then paid directly by
. said owners or shareholders on their personal tax returns. Corporations, however, are entirely separate entities. The profits and losses of the business are taxable back to the business, rather than to the individual owners or shareholders.
