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Choice of Business Entity: Pros and Cons of Corporations and LLCs
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Choice of Business Entity: Pros and Cons of Corporations and LLCs

By Christian Hollweg

Choosing the form of your business entity is one of the first and most important steps toward running a successful business.  Three of the most common entity types are C-Corporations, S-Corporations and Limited Liability Companies (LLCs).  Each entity type has its own advantages and disadvantages, including with respect to taxation, attractiveness to investors and simplicity.  For most companies intending to raise money from venture capital funds, a C-Corporation is the most common choice.  However, S-Corporations and LLCs provide tax advantages that may make them more suitable for certain businesses.  This article addresses the pros and cons of C-Corporations, S-Corporations and LLCs, and how you can determine which one may be right for your business.

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