US companies that are legally established…. When a company has the letters “Inc after its name, it means the company has been incorporated. There also are other abbreviations that a company can have after its name: 1. The difference between Inc. If a company uses corp.
LLC is an abbreviation that means the company is a limited liability company.
This type of company is owned by its members and it has pass-through tax liability, which means the company does not pay taxes on income, but the members do. Members are protected from liability, which lies with the company. See full list on legalzoom. It has filed all the necessary legal documents with that state. The company is operating as a corporation in the eyes of the government and the IRS.
When a business decides to incorporate, it first must choose the state in which it will incorporate. Then the following steps are taken: 1. The company next must choose what type of corporation it will be: an S corporation (which has pass-through tax liability so the corporation does not pay tax, but the shareholders do), a C corporation (which pays corporation taxes), or an LLC.