Many business owners want to compare an LLC to a corporation when deciding which legal entity is best for their business.
Both forms offer limited liability protection for their owners.
Generally, the LLC is ideal for the small business enterprise where the ownership is held by one or just a few owners. The LLC offers more tax choices and a simpler structure which has lesser requirements when it comes to maintenance and governance. The LLC is also a more flexible entity which allows owners to operate their business the way they want.
The corporation is the older of the two entities and is definitely the right choice for a company that wants to go public (have an initial public offering) or one that needs to take in venture capital investors as those investors will require a corporation.
The answer of LLC or corporation depends on your specific situation and many factors to into this inquiry including legal, business and tax matters. The LLC Expert has recently launched a more in-depth article about the comparison factors between the two entities: LLC or Corporation?