| You are ready to get serious about a business idea. | | | | but it completely ignores most of the issues that make |
| You've read somewhere that protecting yourself is a | | | | the LLC a good or bad choice for a particular business. |
| critical move. You know this means you need to form | | | | Taxes are huge issue for instance. Some large states |
| some type of business entity. The question you face is | | | | like California actually charge LLCs with a gross |
| whether an LLC or corporation is the right choice. | | | | revenue tax. Yes, GROSS! That can be a huge |
| The web is a wonderful medium. It has opened up | | | | deterrent for most small businesses. What if the |
| communication across the world to unheard of or | | | | business goes big and you want to go public? You |
| even unimagined levels. The shear amount of | | | | can't take an LLC public! |
| information available at a click is simply astounding. This, | | | | Well, this must mean the corporate entity is the best |
| however, has also resulted in a problem. There is often | | | | option in most cases right? No, not really. A corporate |
| too much information and much of it is contradictory. | | | | entity gets bogged down in many ways as well. One |
| This is exactly the situation when it comes to choosing | | | | is the lack of flexibility. If there are multiple shareholders, |
| between an LLC or corporation for your business. | | | | the minority shareholders can cause a host of |
| Let's cut right to the chase. Which entity is better for | | | | problems and everyone can start suing each other |
| you? Are the sites touting the LLC right of are the | | | | over control of the entity. The money flow is also |
| sites touting the Corp or S-Corp? The answer is there | | | | going to be double taxed. On the other hand, you have |
| is no blanket correct answer. Sorry, but we are dealing | | | | to be a corporation in most situations to go public if |
| with the real world here. The corporation is the best | | | | that is your goal. |
| choice for some businesses and clearly so. In other | | | | Given all of this, how exactly are you supposed to |
| situations, the LLC is clearly the best choice. The devil | | | | know which entity is right for your business? I have |
| is in the details of each situation, but let's look at some | | | | bad news. You should hire an attorney. You can retain |
| generalities. | | | | most of them for an hour and ask all the questions |
| The LLC is often touted as the "best" business choice | | | | you like to make sure you get the correct answer for |
| because it is simple to run. You don't have to have | | | | your particular situation. If you just randomly pick an |
| annual meetings and meet the formalities of the entity. | | | | entity, you could end up really regretting it down the |
| This sounds nice and makes a great marketing pitch, | | | | road. |