Before things start getting messy.
If you have multiple people involved and are interested in finding investors then its time to start getting serious about being incorporated. Not only will you look more together, but you’ll be more put together.
As far as which direction you should go, it comes down to the future of the business. Some people feel that investors are more hesitant with LLCs (although that’s not always the case). Plus there’s the potential for tax and management flexibility that corporations simply don’t offer. Then again, because corporations have been around longer, from a legal standpoint there’s more information about how litigation will be decided—LLC law tends to be a little more diverse since they were only first founded in the 1970s.
There’s pros and cons to either situation, but to make the best choice you should consult with a startup attorney. And,could be the right solution for you. We’ve already helped over 1000 entrepreneurs just like you get their business off the ground.
Also, if you are interested in some reading material on the subject, here’s a link to my free eBook:. I’ve included some of the most common things you should focus on as your business develops. I hope it helps!