As an attorney specializing in business organization, I have often been asked by my clients whether they should form an LLC or a corporation, specifically an S corporation. Well, that depends. In fact, it depends upon a lot. Most of my clients approach me already armed with the knowledge that either entity will generally shield them from personal liability for the acts and/or omissions of the business. However, relations between multiple owners, taxes and treatment of assets are just a few of the factors that will dictate which choice of entity is truly suitable for your business. By and large, there is no uniform “right” choice. A careful review of the details, strategies and goals of each business needs to be made before the entity is chosen.
There are, however, some basic similarities and differences between each entity. I have attempted to provide an overview of these key elements below. But please keep in mind, the information below, by itself, will not allow you to make a proper, informed choice of entity. This should always be done in conjunction with the assistance of your attorney and accountant.
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