Starting a Business

What type of entity should I file as--a corporation or LLC?

min read
Opinions expressed by Entrepreneur contributors are their own.

You're wise to be asking about forming a separate entity for your new business.  The kind of business you're thinking of starting involves a lot of potential liability areas, from which you want to shield yourself.


But the corporation/LLC decision is like balancing the sides of a scale.  Do you want to have passive investors in your business?  Are you thinking of taking the business public?  What are the start-up costs in your state for the different forms?  Does one provide certain tax advanatages that the other doesn't?  Will you be looking for other active owners to join you?  How you answer each of those questions could tip the scale toward a corporation . . . or an LLC . . . or have equal effect.  Check out my article, "How to Choose the Business Structure That's Right For You," for a little more guidance.  But definitely speak to an attorney and an accountant in your area to review these issues and get the specific advice you need.

More from Entrepreneur

Whether you are launching or growing a business, we have all the business tools you need to take your business to the next level, in one place.
Enroll Now

One-on-one online sessions with our experts can help you start a business, grow your business, build your brand, fundraise and more.
Book Your Session

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.