Businesses can be comprised of only one person or they can be at the other end of the spectrum — multinational companies with thousands of employees, and their needs will vary as far as business structure. The chief considerations in incorporation revolve around taxation and liability. The primary differences among limited liability companies (LLCs), limited liability partnerships (LLPs), S corporations (S corps) and C corporations (C corps) involve the determination of how much is payable to the Internal Revenue Service when profits are taxed and who is responsible for paying these taxes.
Certain types of corporate structures are required to draft legal documents that provide information about the company, such as its purpose and how it will operate. For a corporation, this legal document is the articles of incorporation. For a limited liability company (LLC), it is an operating agreement. These two documents have similarities and differences as to how each is utilized by its respective business structure.