A corporation under Company law or corporate law is specifically referred to as a “legal person”- as a subject of rights and duties that is capable of owning real property, entering into contracts, and having the ability to sue and be sued in its own name. In other words, a corporation is a juristic person that in most instances is legally treated as a person, and empowered with he attributes to own its own property, execute contracts, as well as ability to sue and be sued ...

A Limited Liability Company or LLC is a legal entity that limits the liability of its owners. LLC is more suitable for small businesses with a limited number of partners. Limited Liability Company is neither a corporation nor a partnership, but combines the benefits of both. The liability of a businessperson is limited to his investment in the LLC. This means that he cannot be held personally liable for company debts unless he has stood a personal guarantee.

Working for yourself is a great thing. It gives you freedom, time and a sense of pride and accomplishment. While it is undisputed that small businesses form the backbone of our economy, many of these small businesses can lead into trouble. While everyone believes they will be an unmitigated successes, the statistics reveal a majority of businesses will fail within two years. This means protecting yourself from the outset an important step.

When starting a business, one can run into information overload. One area this can occur with is business entities. With all of the information on the web and various discussions of this and that, you can easily get confused. Before you figure out the intricacies of a corporation, for instance, one needs to deal with the basic question of the necessity.

If you are thinking of starting a new venture, one of the most important decisions to be taken is how you will go about incorporating your business. Although incorporation can be a longer and more expensive process, as compared to setting up a sole proprietorship or partnership firm, it does have several advantages. Needless to say, incorporating your business is an extremely important activity, and must be embarked upon after careful consideration.

Limited Liability Company or LLC is what you will get when you combine the attributes of both corporations and partnerships. So this is like corporation's protection from personal liability for business debts and the pass-through tax structure of partnerships and sole proprietorships put together.