Although Corporations and Limited Liability Companies offer their owners similar protections from liability, differences between the two entities can be found. For instance, when transferring property from an LLC, the Iowa Revised Uniform Limited Liability Act requires that the record (i.e deed) must disclose whether the LLC is member-managed or manager-managed; whether the conveyance is in the ordinary course of the LLC’s business or affairs; and that the signer has authority to act on behalf of the LLC. Whereas, the record does not need show these additional disclosures for property transferred by a corporation.
Consideration must be given to subtle differences such as these when deciding on a choice entity for a new venture.