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URL:  https://boards.fool.com/however-if-this-is-the-only-thing-separating-the-19315634.aspx

Subject:  Re: LLC vs. S or C corporation. Date:  7/13/2003  1:17 PM
Author:  LongHook Number:  7815 of 15019

However, if this is the only thing separating the LLC from an S-corp., I don't see it as being a major obstacle, especially if it meets my criteria.

LLCs are probably the most convenient business form when you're a sole proprietor looking to get some amount of protection. They're significantly less complicated than S or C corporations. LLCs have the pass-through taxation advantage of S-Corps. C-Corps are far too complicated for what you're doing, and even an S-Corp doesn't make much sense unless you have multiple owners and want to issue shares.

A lot of this highly depends on your state, eventual ownership goals, etc. Also keep in mind that the limitation of liability doesn't take effect automatically, you MUST go through the motions of separating the corporation from the individual, which means separate bank accounts, holding board meetings, having by laws in your articles of incorporation, meeting minutes, etc.

I would highly recommend you purchase a book on the subject from Nolo Press or someone similar (www.nolo.com) or go to your bookstore and browse for a few titles in the business section. It's really not that complicated once you read over the sections that detail the differences and choosing the right form.

-Hook

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