LLC vs. INC.? Hi me and some friends are looking to start a small business.

Hi me and some friends are looking to start a small business. we have a plan of what we want to do, how to do it, and what our target souk is. However we can't decide on a LLC or going Inc. There are 3 of us and be funding it with our own money.

The LLC is probably easier and cheaper to organize and register beside your Sec of State. In addition, you can elect to be tax as a corporation rather than a partnership if once contained by operation you see that that would be an advantage tax-wise.

Every-bodies situation is different but within general a small business can operate economically as an LLC and the LLC is normally smaller amount complicated then a corporation.

You should write a solid Membership agreement for the LLC that address;
the duties of each associate
how disputes should be resolved
how profits are to be distributed
what happens when a contributor fails to live up to his responsibilities
what happen if a member desires to leave the LLC
what happen upon the death of a partaker
Who is responsible for the day to sunshine operations

I've simply touched on a few things that need to be covered, you should transport your time preparing the document and if necessary find legal suggestion.

Answers: i muse it is cheaper to do an llc, and most importantly you can avoid double taxation (if you opt to be taxed close to a partnership instead of a corporation). inc is better if you plan on "going public" (have shares in your company traded contained by the stock market). they both provide the same even of limited liability. so i enunciate go for llc!
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