Understanding business entities…
Knowing how your business entity should be formed is the first step to running a successful company. You may have questions about what a Limited Liability Company (LLC) is or why you might want to consider forming a corporation. You may also have questions about what is best for your company. This week, we’ll focus on the LLC and Corporations because these are the two more common types of business entities. We’ll cover Partnerships, Sole Proprietorships and the differences between “S” and “C” Corporations in the following weeks.
So, how do you choose between LLC and Inc.?
LLC vs. Inc.
Understanding what you want, evaluating goals and seeking advice from a professional is the best way to ensure that your business is set up correctly and that your personal and professional interests are protected. There are advantages to both types of entities, and deciding which is right for you will affect your business practices.
An LLC offers you:
- Relatively simple set up
- Less corporate formalities
- Limited liability protection
- More flexibility than a corporation
A Corporation offers you:
- Potential tax advantages
- Limited liability protection
- The ability to work with a larger base of venture capital companies
- The ability to provide more fringe benefits for you and your employees
Considering your short-term and long-term goals that you have for your company will help you determine what will work best for your business. Seeking experienced legal advice can help you navigate through the process.
Business Planning with Business Law Southwest
If you are unsure about what type of company will work best for you, contact Business Law Southwest. We can help you sort through your options and help you decide which entity will serve your best interests—both now and in the future.
