Which entity type should I choose?
Choosing the correct entity type is an important first step that can have significant tax ramifications if improperly selected. The LLC seems to be by far the most popular choice for small business owners. The LLC offers the same limited liability protection that a corporation does while doing away with all of the tedious formalities typically associated with the corporation.
Another nice feature of the Limited Liability Company is that it is able to easily mimic the tax classifications of the corporation and the s corporation. For example a business owner who has an LLC can elect to be taxed as an s-corporation or c corporation if he or she chooses.
The casual framework of the LLC and it’s unique ability to clone any tax classification make it an attractive entity to the vast majority of clients we serve. However if you are uncertain if this entity is right for you we suggest that you consult with your accountant before proceeding.