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Incorporating a business automatically makes it a regular, or “C” corporation. C-corps offer limited liability protection for shareholders. This means that shareholders are not personally liable for the debts and obligations of the corporation. C-corps can also raise capital through the sale of shares.
A California LLC generally offers liability protection similar to that of a corporation but is taxed differently. Domestic LLCs may be managed by one or more managers or one or more members. LLCs offer liability protection for their owners meaning that the owners’ personal assets are not at risk.