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Is an LLC better for you?
If you plan to run a business and are concerned about personal exposure to lawsuits or debts arising from your business, you may want to consider forming a Limited Liability Company (LLC). While Corporations also provide this sort of protection from personal liability, many small businesses prefer the relative simplicity of the LLC formation process. The major differentiating factor is taxation. Corporation taxation is very different from that of an LLC.
Benefits in forming a Limited Liability Company
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An LLC is a combination between corporation investor asset protections and the simplicity of a partnership. Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC’s owner’s tax return. If choose to be an LLC, you may need assistance filing tax forms for as an individual, partnership, or corporation.