The LLC is commonly perceived as an easier type of business to run than a corporation because there is less paperwork or documentation required.
Many people who do not want to maintain corporate minutes or have annual board meetings choose to file a LLC. Conversely, those who plan to seek external financing often create a corporation.
| Type | Liability | Complexity | Taxation Status |
| LLC | No | Medium | Pass-Thru |
| S-Corporation | No | Difficult | Pass-Thru |
| Corporation | No | Difficult | Regular Entity |
A corporation is a more common type of business setup for those trying to get funding for their business. While it is possible to obtain external financing for an LLC, it is not as common as with a corporation. Federal laws are in place for those looking to gain financing for a corporation. Please check with your attorney or visit the Securities and Exchange Commission for financing laws and rules.
For more information on how to form LLC partnerships or file a corporation online through IncorporateFast.com, please visit our Learning Center or call us toll free at (866) 999-8200.