LLC vs Scorp

[helloworld904]

Which gives more protection.

 

[Munchieman]

I don't think either one gives better protection than the other. An LLC is easier to maintain, so in a sense, it could be easier to protect yourself with an LLC. With a corp, there is more you have to do to maintain the protection, that there is greater chance you will have a problem. I look at the problem of LLC vs Corp like this, am I going to have people (investors) that will want voting rights? If so, a corp would be the better way to go. Otherwise, you can limit the investors ability to vote to issues specified in the operating agreement.
Hope this helps!
Brian

 

[Michael Wechsler]

Good points Brian. There can also be issues with costs and the ease of distribution of shares. State laws also differ with regard to LLCs and S Corps.