HOW TO DECIDE
Most people know that corporations have one or more shareholders who own the business, boards of directors who oversee and manage the business, officers who handle the day to day operation of the business, annual shareholder meetings, and meetings of the board of directors. Corporations have lots of formality which is sometimes helpful especially when several people are going to be owners.
LLCs were created by legislatures for the purpose of minimizing formalities while providing the same protections to you and your business as corporations. LLCs typically have one or more members, no boards of directors, no shareholders, operating agreements that define how the member or members act, no requirements of annual meetings or formal directors meetings, etc.
How to choose? Well, with some advice from an attorney or accountant, the tax advantages of corporations or LLCs an be made roughly the same. Corporations are usually but not always a better choice when lots of people are involved. LLCs are usually better when decisions can be made informally and those who own the business are involved in the business daily.
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