Guest User 1/7/26 Guest User 1/7/26

Choice of Business Entity: Pros and Cons of Corporations and LLCs

When launching your startup, there’s no shortage of big decisions to make, but one of the most impactful at the early stages is choosing the right legal structure. Choosing the right form of entity lays the foundation for how your business will be taxed, your process for raising institutional capital, and the treatment of your expected return upon exit. The three most common types of entities are C-Corporations, Limited Liability Companies (LLCs), and S-Corporations. For most founders who intend to raise outside capital from traditional venture capital funds, a C-Corporation is most common. However, LLCs and S-Corporations provide their own unique tax advantages that may be more appropriate for certain businesses. This article provides a summary of some of the pros and cons of each entity and factors to consider as you determine which entity may be the right fit for your new venture. Consulting with a legal advisor to assess your specific situation is essential.

Guest Contributor 11/26/18 Guest Contributor 11/26/18

LLCs and Convertible Debt – Too Good to be True?

By Scott Pinarchick and Will Bussiere

Founders choosing a structure for their business are often drawn to the limited liability company, or LLC, for its overall flexibility in both taxation and governance matters. And founders seeking access to early capital, not to mention seed investors themselves, are often drawn to the convertible note as a simple, less expensive means to raise funds.

Guest Contributor 12/18/17 Guest Contributor 12/18/17

Are You An Owner Or Employee? The Inflexibility of the Federal Tax Rules To Be Treated As Both

By Dan Wilcox and Scott Pinarchick

Over the last twenty years or so, the limited liability company (“LLC”) has become a popular entity choice as a business entity. An LLC offers a great deal of flexibility in how it is structured and operates, including the ability for its owners to decide to be classified as a partnership, S corporation, C corporation or, if there is only one owner, to be disregarded as an entity for federal income tax purposes.

Guest Contributor 10/31/17 Guest Contributor 10/31/17

Is a Series LLC Right for Your Business?

By Amy Burkhoff

The Series limited liability company (the “Series LLC”) is more nuanced than an ordinary limited liability company, and for the right user, it provides flexibility that will streamline administration better than other alternative entities. Although there are some risks and uncertainties relating to the Series LLC, as discussed further below, the Series LLC is a useful tool to create a series of limited liability companies in a single vehicle, preserving limited liability and reducing the administrative expenses necessary to organize different lines of business or manage different properties.