Entrepreneurs often have questions about which business entity to choose when starting out. There are essentially two choices to make.
State Level Decisions: LLCs vs. Corporations
The first decision is which type of entity is best at the state level. Here, the most common options are limited liability companies (LLCs), or state registered Corporations. In both cases, the filings to establish or “form” the entity are made with the Secretary of State within the state of incorporation depending upon where the company wishes to formally register. Forming either entity is a first step for business owners limiting their liability in the company in order to ensure the company owners private, individually owned assets are shielded from lawsuits against the company. This is the main purpose of filing corporations or LLCs at the state level.
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