LegalZoom offers a ton of online Legal resources to help the new or experienced Entrepreneur form their Business Entity. Honestly, I too had no idea if I needed a LLC or C Corp/S Corp when I started…the information from online Attorneys seemed to only confuse me more (ughhh!). But, once I found LegalZoom.com – I could easily figure out what corporate legal entity was best for my needs. Check out their awesome business formation excerpt below:
Corporations and LLCs are both excellent choices for business owners looking to minimize their personal liability and build greater credibility. But each entity also offers distinct tax and business advantages. Choosing the right one depends on the specific needs of your business.
Okay, I can understand that – they each have their own benefits and drawbacks – please go on:
Corporations offer personal liability protection, tax savings, and increased opportunities for raising capital. Corporations are also required to perform certain formalities such as holding annual meetings and keeping detailed corporate records (minutes). With LegalZoom you can choose to incorporate as either a C or S corporation.
Makes sense, sounds like there are a bunch of ‘formalities’ and record keeping needed – most important, thank you LegalZoom I can understand your ‘legal speak’! Let me go on…
Limited Liability Companies (LLCs) offer the same personal liability protection as a corporation, but with fewer of the corporate formalities. They typically are not required to hold formal meetings or keep detailed corporate minutes. LLCs also offer great tax flexibility. Members can choose to be taxed as either a traditional corporation or as a “pass-through” entity.
LegalZoom also offers a really simple Matrix of the different choices below (Image from LegalZoom – we cannot take credit!):