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

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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.

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