The abbreviation “LLC” stands for limited liability company, and it literally means what it says. A limited liability company where business owners separate their personal liabilities from the business liabilities. This effectively limits their own liability when it comes to company debts and responsibilities. When you form an LLC, your business becomes its own legal entity.

A C corporation (or C-corp) is one of the several legal ways to structure your business. Corporations are generally most suitable from an investor’s perspective because their structure is designed to distribute ownership valued in stocks. It has Limited Liability and is a practical way to go if you are planning an IPO or intend to trade shares publicly.