My own amateur understanding is that LLCs are distinct from corporations, and that S-corps and C-corps are tax statuses rather than types of legal entities. Co

My own amateur understanding is that LLCs are distinct from corporations, and that S-corps and C-corps are tax statuses rather than types of legal entities. Corporations generally have more diffuse ownership than LLCs, which is why people ascribe bad things to that specific type of entity. If there is a gym doing these tactics, and it's an LLC with a handful of owners ("members"), those owners are just asshole humans that could theoretically be punched in the face. Whereas if it's a corporation with diffuse ownership, then the policies become "just business" and "nobody's fault". Although corporations certainly can be "closely held" by a few people or a family, just as you can sell shares in an LLC to investors at arms length or have all/part of the LLC owned by a corporation or business trust. And frankly I'm surprised by the number of small businesses I see set up as a sole proprietorship or partnership and doing-business-as rather than spending the money on LLC registration fees. Although as a business gets smaller the protection created by the LLC structure also shrinks, so it's somewhat understandable.