Robert Goldberg compares LLCs and corporations on liability, taxes, and investor appeal. LLCs can be taxed as corporations or S corps and have fewer formalities. Banks prefer lending to corporations, but Goldberg recommends LLCs for new or small businesses.
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Hi guys, so I'm going to explain the main differences between an LLC and a corporation to help you determine which is best for you. For the most part, they're very similar. They both provide you with personal liability protection, and they may also provide you with tax benefits. But be careful with getting skewed into a corporation because of the tax benefits. Generally, an LLC can also provide you with tax benefits the same way a corporation can. An LLC can be taxed as a corporation, and it can also be taxed as an S corporation. Another main difference is that a corporation has shares, so investors do generally prefer to invest in corporations, and banks make it easier to give loans to corporations. And the last main difference is that an LLC is a lot easier to maintain each year. It has less formalities than a corporation. So if you're just starting out or if you're a relatively small business, I recommend an LLC.