Startup Structure Question: Why and when are LLCs preferable to S corps and vice versa? Answer #1: If now or soon contemplating employee stock options and/or bringing in outside investors, then corporation status is probably desirable.  And … you can later convert from S to C. Answer #2: Otherwise, LLCs are more desirable. Pass-Through Entities [...]

[Audio clip: view full post to listen] In today’s podcast, we discuss some practical operational differences between limited liability companies (or, “LLCs”) and corporations.  We’re specifically interested in covering what corporate formalities are required for the 2 different types of business entities, and what are the differences and similarities. One of the big attractions (to [...]

LLCs vs S corps: Income and Tax Differences: These income and tax questions are frequently asked when individuals and partners contemplate forming a new company.  Basically, am I better off with an S-corp or an LLC?  There are several non-financial benefits (which I lean toward) in favor of the LLC over the S-corp, particularly the [...]