Introduction
If you’re starting a business, the terms LLC and corporation may sound similar, but they represent different legal structures. One common question is: “Is an LLC incorporated?”
The short answer is no—an LLC is not incorporated. Let’s explore what that means and how it affects your business formation.
What Does “Incorporated” Mean?
The term “incorporated” refers specifically to the creation of a corporation, such as a C Corp or S Corp, under state corporate laws. This process is known as incorporation, and it establishes a separate legal entity from its owners (shareholders).
Is an LLC Incorporated?
No, an LLC is not incorporated. Instead, it is formed by filing Articles of Organization with the state, not Articles of Incorporation. While both LLCs and corporations provide limited liability protection, they are fundamentally different in:
- Structure
- Taxation
- Management
Key Differences Between an LLC and a Corporation
| Feature | LLC | Corporation |
|---|---|---|
| Formation | Articles of Organization | Articles of Incorporation |
| Owners | Members | Shareholders |
| Management | Flexible (members or managers) | Board of Directors |
| Taxation | Pass-through by default | Double taxation (C Corp) |
| Formalities | Minimal | More complex |
Why the Confusion?
Many people assume any legal entity is “incorporated,” but incorporation only applies to corporations. LLCs are organized, not incorporated.
Despite this difference, both types of entities offer similar legal protections, such as shielding personal assets from business liabilities.
Conclusion
So, is an LLC incorporated? No. While both LLCs and corporations are legal entities that limit liability, only corporations are technically “incorporated.” LLCs are simply formed or organized under state law.
