For many people, it’s confusing to know whether to form your business as an LLC vs Corporation. The choice you make when setting up your business now can have important financial and ownership ramifications later. You can find many resources online that will give a comparison between the two and help you understand the costs and benefits to each type of company structure. Realistically, the best way to choose whether to establish yourself as a Limited Liability Corporation or a true Corporation is to consult a lawyer or an accountant who knows your field and industry very well. Often, there can be particular characteristics of your business that can make either an LLC or a corporation a dramatically better choice that a more general company structure guide cannot anticipate.
While it may be a bit expensive to hire an accountant or attorney upfront to help make this decision, you should anticipate that making the wrong decision up front and needing to change it later may cost you even more. It’s best to understand up front which will be the best for your particular business and start down the right path initially. Again, be careful to make sure that your lawyer or CPA knows your industry well since it’s often the industry-specific details that can tip the balance one way or the other for your ideal company structure. If you can’t afford to spend money on professional assistance now, use one of the many checklists and guides available online to make the best possible choice now and when you have money later, check your decision with a professional to ensure that you are on the right track.