Starting a business is exciting — but confused choose LLC or INC ?
What Is an Inc.?
“Incorporation” (often abbreviated as Inc.) refers to forming a corporation — a legal entity separate from its owners. This structure is favored by companies seeking to raise money through investors or eventually go public.
Key benefits of Inc.:
Easier to raise capital
Formal structure that investors prefer
Perpetual existence (company lives beyond the owner)
Strong liability protection for shareholders
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What Is an LLC?
An LLC or Limited Liability Company is a flexible business structure that combines the limited liability of a corporation with the tax efficiencies and operational simplicity of a sole proprietorship or partnership.
Key benefits of LLC:
Simple management structure
Pass-through taxation (no double taxation)
Great for small to medium businesses or freelancers
Fewer compliance requirements
| Factor | LLC | Inc. |
| Ownership | Members | Shareholders |
| Taxation | Pass-through or corporate tax | Corporate tax (can be double-taxed) |
| Formality | Less formal | More formal (bylaws, board, etc.) |
| Raising Capital | Limited | Easier to raise funds |
| Best for | Freelancers, small biz | Startups, tech, investors |