Most often, the L.L.C. (Limited Liability Company) entity type offers small-business owners the greatest number of benefits. Some of the most-common benefits include: its flexibility, its small number of formalities, and its liability protection. If this list is not enough for you to make your incorporation decision, however, here are a few more instances in which an LLC would be preferred:
1. When real estate is to be purchased.
2. When an owner is concerned about filing their own name with the state of formation.
3. When the owners seek to distribute tax benefits that are disproportionate to the ownership of the entity.
So when, if at all, is a corporation preferred over an LLC? Well, there are in fact a few of these instances. Some notable ones include:
1. When the company plans on being included in the stock exchanges.
2. When the company plans on having investors that prefer stocks over LLC units.
3. When the company owners wish to create a non-profit corporation.
2. What is all this I hear about the "Series LLC" in Delaware?
The Series LLC is a form of LLC in Delaware that has infinite asset-segregation. Under one such LLC you can set up numerous "series" that each contain their own assets.
3. Which registered agent is the best?
Sorry, but this question is not so easy to answer. Since each company has its own needs, each particular company should weigh its options.
