Most small companies start as an LLC, but a corporation can be the better choice if you plan to bring in investors.
| LLC | Corporation | |
|---|---|---|
| Personal liability | Protected | Protected |
| Paperwork | Light | More formal |
| Taxes | Flexible | Corporate tax, or S-corp election |
| Raising investment | Harder | Easier |
Whatever you choose, write an operating or shareholder agreement on day one. It is far cheaper than a dispute later.
This article is general information, not legal advice for your situation. Laws differ from place to place: talk to an attorney before you act on it.