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Business Structure Guide

LLC vs Corporation: Which is Right for Your US Business?

A comprehensive comparison of LLC and Corporation structures to help you choose the right entity type for your US business venture.

Attorney-ReviewedUnited StatesUpdated January 25, 2026

Quick Comparison

FeatureLLCCorporation
Default taxationPass-throughDouble taxation (C-Corp)
Management flexibilityHighStructured
Ownership typesFlexibleShares only
VC investment friendlyLess commonPreferred
FormalitiesMinimalMore required

Planned Content Outline

  1. 1Overview: LLC vs Corporation at a Glance
  2. 2Formation Requirements & Costs
  3. 3Liability Protection Comparison
  4. 4Tax Treatment Differences
  5. 5Management & Ownership Flexibility
  6. 6Raising Investment: Which Structure Do VCs Prefer?
  7. 7Ongoing Compliance Requirements
  8. 8Converting Between Structures
  9. 9Special Considerations for Non-Residents
  10. 10Decision Framework: Which Should You Choose?
  11. 11FAQ
  12. 12Sources

Related Resources

LLC Formation Guide

Step-by-step guide to forming a US LLC

IRS & Tax Realities

Tax considerations for your business structure

Cite This Entry

Standard

EchoLegal, “LLC vs Corporation,” EchoLegal Legal Encyclopedia, v1.0 (last updated Jan 25, 2026), https://echo-legal.com/en/llc-mi-corporation-mi.

Bluebook

LLC vs Corporation, EchoLegal Legal Encyclopedia (last updated Jan 25, 2026), https://echo-legal.com/en/llc-mi-corporation-mi.

Citation ID:ecl-cmp-00001

This content is for informational purposes only and does not constitute legal or tax advice. Business structure decisions depend on many individual factors. Consult qualified professionals for your specific situation.