LLCs and Corporations are both considered separate legal entities, meaning that owners and members are not held personally liable for the debts and obligations of the company.
However, corporations are taxed at both an entity level (the corporation itself is taxed on its earnings) and at a shareholder level (shareholders are taxed on the dividends they are paid). LLCs are not taxed at the entity level and therefore avoid this double taxation.
For the most part, running an LLC requires less paperwork and formalities than running a corporation. For example, LLCs are not required to hold annual meetings or keep meeting minutes (although they are encouraged to do so.)
It can be difficult to transfer membership interest within an LLC. Oftentimes members are not allowed to sell their membership interest without the majority vote (or sometimes unanimous consent) of the other members. In a corporation, on the other hand, stocks or shares can be purchased, sold, and transferred with relative ease, as there are usually fewer restrictions on who can sell stock and when. Corporations will often give stock as a reward to employees, or offer stock as an incentive when recruiting employees. LLCs do not have this option.