Formations Of Corporations And LLCs

Corporation or Limited Liability Company?

Almost the first question that any entrepreneurial client asks us is: “Should I form a corporation or limited liability company?” It’s a great question, but it can be a complicated one. For example, are you the sole owner or do you have partners? Do you want your percentage of ownership to be equal to the profit distribution percentage or do you want to do something different? Have you talked to your tax adviser about the most tax advantageous entity for your particular situation? How likely are you to update your minute book from year to year? Some of the DIY legal websites can lead you through questions to help you decide, but those websites aren’t able to ask YOU questions that might be key to your decision on what type of entity you need.