Corporations have a fixed management structure that consists of a board of directors that oversees company policies and officers who run the day-to-day business. Owners, also known as shareholders, must meet every year to elect directors and conduct other company business. LLCs don’t have this formal structure, and an LLC owner has significantly more flexibility about the way they run the business and make decisions. Additionally, LLCs encourage owners to participate in the management of the business, while corporations allow owners to be hands-off and take a salary as an employee.