I thought I would share this chart we created that captures some of the critical differences between each type of entity:
There’s a handful of factors to consider.
At the most basic level though, a C-Corp is generally preferable to a company that expects high growth and outside funding. The same goes for an S-Corp, but the membership restrictions make it less desirable than a C-Corp. An LLC is quickly becoming the most common form, as it provides robust protection against personal liability, without all the formalities required by C-Corps & S-Corps.
This chart is a good starting point but there are factors unique to industries and states that can change the analysis. Feel free to reach out toif you need any help, you can connect with business lawyers on demand. We offer free initial consultations & a satisfaction guarantee. (Disclosure: I’m the CEO)