Incorporation v. LLC

Many starting a new business will come across the decision of whether to incorporate with a corporation legal entity or whether to form a limited liability company for their business.

There is no right answer to this choice as it depends on the facts and circumstances of a particular business. In most “small” business situations, the LLC is the more popular entity because it is easier to maintain, qualifies for a single layer of tax automatically (without any required elections) and is extremely flexible when it comes to accommodating any specific owner, investor, manager or operational need of a business.

On the other hand, corporations have been around a lot longer and are necessary if there is any intention of going public. Or it you intend on taking in any professional investors (like venture capital), the investors will likely demand a corporate legal entity.

Visit the major incorporation services sites we review as they all have some good information on the corporation v. LLC choice.