When forming a company, how do...

When forming a company, how do I choose between an LLC, a Corporation, and an S Corp?

• Choosing the best route to form your company will depend on a few factors:
  • company size
  • is the company providing a product or a service
  • will the company stay domestic or international
  • is the company open to investors, buying and selling stocks, or open to shareholders

  Companies that choose to form as a corporation are typically larger, publicly traded companies that attract investors who prefer to be taxed less.  Companies that take the s corp route tend to be selling a good or a product, with employees or independent contractors.  LLCs are appealing to the smaller business where the owner is providing a service such as graphic design or cleaning services.  Corporations, s corps and LLCs each present advantages and disadvantages in terms of taxation and federal and state regulations and licenses.