Understanding Business Formation: LLC vs Corporation

Choosing the right business structure is one of the most important decisions an entrepreneur will make. The two most common options — Limited Liability Company (LLC) and Corporation — each offer distinct advantages and disadvantages.\n\nAn LLC provides flexibility in management and taxation while offering liability protection for its members. It is particularly well-suited for small to mid-sized businesses that want pass-through taxation and a simpler operating structure.\n\nA Corporation, on the other hand, offers a more formal structure that can be advantageous for raising capital through the sale of stock. C-Corporations are subject to double taxation, but S-Corporations can elect pass-through treatment similar to an LLC.\n\nKey factors to consider include:\n- The number of owners and their roles\n- Plans for raising outside investment\n- Tax implications specific to your situation\n- The level of formality you are comfortable maintaining\n- Long-term growth and exit strategy goals\n\nAt our firm, we work closely with business owners to evaluate their specific circumstances and goals. The right choice depends on your unique situation, and we are here to help you navigate that decision with confidence.