Corp. or LLC?

Stephen G. Barr
May 16, 2015
1 min read

There's more to starting a business than coming up with a great idea, writing a business plan and finding financing. A would-be small-business owner also must decide how the business should be structured.

Until recently, most chose between sole proprietor, partnership and incorporation (including its small-business sibling, the S chapter corporation).

Now, though, more business owners are choosing to go with another choice -- the limited liability company. An LLC offers more legal protection than a partnership, but retains the tax pass-through characteristics of a partnership.

Like the other choices, it has its pluses and minuses. Although individual circumstances will affect your decision, here's a scorecard for each that should help you plot your course.