Should a business choose LLC versus Inc?

Question

For someone starting a U.S. business, what should they consider when choosing LLC versus Inc, particularly regarding taxes, liability, and management?

Clay · Answer

The choice of LLC or Inc. depends on the objectives of the business. The LLC is a good choice in case of simplicity in management, taxation, and liability coverage. Inc., on the other hand, might be appropriate when the business wants to have external investors or go public in future.

Steve · Answer

The selection of an LLC would be ideal for a business because of its simple structure, flexibility of taxes, and liability protection, although the incorporation might suit it better for purposes of seeking venture capital, issuing stocks, or going public in the future.

Answers