Comparison between an LLC and a Corporation (Inc)An LLC is a ‘Limited Liability Company’ – it is not incorporated therefore it is not a corporation.Limited Liability Company (LLC) Limited LiabilityFormation: State files ‘Articles of Organization’Owners are called ‘Members’LLC has no Income TaxMembers’ personal tax pays LLC tax (Form 1040 or 1040-SR)Members pay self-employment taxesCorporationLimited LiabilityFormation: State files ‘Articles of Incorporation’Owners are called ‘Shareholders’Corporation pays Income TaxShareholders pay tax based on dividendsShareholders do not pay self-employment tax LLC Guide LLC Name Steps To Setup LLC LLC vs INC