LLC Or Corp?

The age-old question for many entrepreneurs-should they set-up their business structure as an LLC or as a corporation. Click through to read the full article on Money. I am pro-LLC, since I think it is the simplest, but let me know in the comments which do you prefer.

clipped from money.cnn.com
LLC or corporation?

There’s virtually no reason why a small business should file as a corporation, unless the owners plan to take the business public in the near future, says Carter Bishop, a professor at Suffolk University Law School who helped draft the uniform LLC and LLP laws for several states.

Instead, filing as an LLC, or limited liability company, is usually the best choice.

The major differences between an LLC and a corporation include decision-making flexibility and the type of taxation the business faces, says Mark Patton, an attorney with Lewis and Roca in Tucson, Ariz.

A corporation has to have a board of directors to make decisions according to a formal process. The “board” could technically be one person, but it still needs to exist. An LLC, on the other hand, can set up an operating agreement at the time the business is created, and make decisions more informally.

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