Genesis Law Firm: LLC or Corporation?

Introduction

• Frequently asked question: Should I form an LLC or a corporation?
• Answer: Neither is inherently better; depends on business goals.
• Focus: Comparison between LLCs and corporations.

Other Entity Options

• Sole Proprietorship
• Partnership
• Limited Liability Partnership
• Limited Partnership
• Note: Sole proprietorships and partnerships often have more cons.

Focus of Discussion

• Limited Liability Companies (LLCs)
• Corporations

Corporations

Advantages

• Strong liability shield for owners.
• Offers protection of personal assets.
• Preferred by large companies (e.g., Microsoft, Boeing) for going public.
• Prestige associated with being a corporation.

Disadvantages

• Double taxation at corporate and individual levels.
• Requires S Corporation election to avoid double taxation.
• Inflexible structure: Mandatory board and executives.
• Generally cumbersome for decision-making.

Limited Liability Companies (LLCs)

Advantages

• Provides a strong liability shield similar to corporations.
• Offers more flexibility in taxation compared to corporations.
• Suitable for saving on taxes.
• Option to convert LLC to a corporation if going public in the future.

Considerations

• Ideal for businesses not immediately aiming to go public.
• Provides an adaptable structure for business operations.

Conclusion

• LLCs and corporations each have unique benefits and drawbacks.
• Decision should align with business goals and future plans (e.g., going public).

Additional Resources

• Visit the Genesis Law Firm website for more information.
• Access resources through the website's resources tab.
• Articles and videos available for further reading on this topic.