While both offer liability protection, LLCs have individual owners while corporations have shareholders. Additionally, corporations have more formal reporting and record-keeping requirements.

The main difference lies in how they are taxed. C corporations are taxed twice, with the business paying taxes on its net income and the shareholders paying taxes on the profits they receive. On the other hand, S corporations only have the shareholders pay taxes on the profits they receive.

These business types are all pass-through entities, meaning they are taxed once on the profits they receive. This means that the business itself does not pay taxes on its income, and the owners report the profits on their individual tax returns. Nonprofits with 501(c)(3) status are exempt from federal income taxes. However, they may still be required to pay certain state and local taxes.

Limited liability companies (LLCs), corporations, and nonprofits offer personal liability protection. This means that the owners' personal assets are protected from business debts and liabilities. On the other hand, sole proprietorships and DBAs do not offer personal liability protection.