Corporation or LLC

Before you start your business you need to decide what form it will take. This decision will stick with you for the life of your business as it is not the easiest thing to change. Every business is different and the correct decision will depend on your goals and your circumstances. Professional help is reccommended, this can help you avoid costly mistakes. Dont forget to think about the tax implications.

You will often see it said that one of the advantages to setting up an LLC (Limited Liability Company) rather than a corporation is that the set up process is easier. In my opinion if you use the right resources setting up a corporation is very easy indeed. Most of this can be done online.

As far as protection is concerned the LLc provides all the protection of a Corporation meaning that your personal assets are protected for example in the case of a law suit against the business. In some cases in the case of a corporation you may find yourself paying tax twice, for the corporation in the first instance an on your personal remuneration from the corporation in the second instance. In the case of the LLC this does not happen.

The paperwork, formalities and laws to be complied with under the Corporation structure are far greator than thise in the LLC. This means that with the LLC you have less paperwork meetings etc. but more importantly it means it is more difficult to make mistakes or break any rules.