LLC vs. Corporation

Many people are familiar with what a corporation is and basically how it works. To better understand the basic concepts of an LLC, compare the ownership of an LLC to the ownership of a corporation. 

The owners of a corporation are called "shareholders" or "stockholders" because they hold (or, in other words, they own) "shares of stock" (or simply "stock") of the corporation. Such ownership interests are ordinarily represented by "stock" or "shares of stock," which can be represented on a piece of paper that is often called a "Stock Certificate" (or "Share Certificate"). By contrast the owners of an LLC are called "members" or sometimes "managing-members" because they hold (or, in other words, they own) "member units" of the LLC. Such ownership interests are often represented by a piece of paper that is often called a "Member Unit Certificate."

Claflin Law can help you decide which entity is right for your business needs.