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Corporation or LLC? [60 Second Law Bite]

Hi everyone, this is attorney Brian Russ coming at you with 60 second Law Bite. This one is on whether you should set your company as a corporation or LLC. Well first of all, you should talk to an attorney to really hash out the issues but the biggest difference though between a Corporation LLC is the level of complexity required to run the corporation. LLC is limited liability corporations, generally have less formal requirements they have to fulfill every year. So there’s less need for annual meetings and things like that. It’s usually you know, you can have one person writing the LLC given that corporate shield. There’s some drawbacks with LLC, so you can’t necessarily you know, issue equity, stocks and things like that you just have to figure it out, percent ownership of the corporation. It also limits on how many people can be partners in LLC, or is it a corporation, the shareholders and things like that. So I think really, a lot of times when I’m talking to individuals who wants to start a single person Corporation is just LLC is the way to go, it’s a lot easier to manage. You should also check out your state’s rules on whether your profession can even be an LLC. Some states don’t allow certain professions to be an LLC. That’s it talk to you later.

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