What’s the Difference Between a Limited Liability Company (LLC) and a Corporation (INC)?
An LLC is best if you want the most informal company possible, while the INC is a better tool if you want to grow the business into a bigger company with shares that can be bought, sold or transferred to investors.
If you start a business yourself without a “LLC” or an “Inc”, the default is what we call a “sole proprietorship” or a d/b/a (short for “doing business as”). If you and a business partner(s) join forces to form a business, it will be a general partnership.
Generally, the reason why people use a LLC or an INC is so that the company can have its own bank account and legal standing (the ability to sue and/or be sued) separate and apart from the owner.
This is a very general explanation, but give us a call today at (858) 926-5797 and we’d be happy to explain more! If you’re considering one of the above options, you can also see our “Starting a Business” page for more on how our business lawyers at Gallagher Krich, APC, can provide assistance to fit your needs.