eMinutes 101 Column 1

Every startup faces three initial decisions: (1) should I form a LLC or corporation?, (2) where should I form my company?, (3) how do I select a corporate name?

These decisions have enormous tax consequences that will impact the business indefinitely.  The best advice is to assemble a team, consisting of a CPA and a lawyer to analyze what makes the most sense.  We’re going to help you make these decisions.  If you start the process online, we’ll ask only very basic questions.  We’ll learn more about your business and give you our advice after we spend some time together on the phone.

DECISION NUMBER ONE: SHOULD I FORM A LLC or CORPORATION? LLCs are virtually the same from a liability protection standpoint, but extremely different from a tax standpoint.  In our firm, we use LLCs as the entity of last resort, because of the extreme junk fees that apply to LLCs (but not to corporations) in California and New York. To learn more, view How to choose between a corporation and a LLC