An LLC is a type of business entity that provides limited liability protection for its owners, more flexibility in governance through a private contract called an operating agreement, and choice of taxation may be taxed as a disregarded entity, as a partnership, or as a corporation under Subchapter S or Subchapter C. A corporation (Inc.) is a different type of legal entity that provides its owners with, liability protection, and files annual reports with the state and is taxed as a corporation under Subchapter S or Subchapter C. Legal entity from its owners, provides liability protection, and, in the case of a Subchapter C corporation, is taxed at the corporate level and the shareholder level when dividends are distributed. Corporations also require a board of directors and an annual meeting of shareholders.