SCorp or LLC?

[youngbizzy]

Which is best for protecting the company and founders? I am in florida.

[ciaossu]

I don't know the exact laws for Florida but when choosing a structure, the number one reason is often because of tax or what you're trying to do with the company. If you have no plan on raising capital or bringing outside investments, then it's strictly a tax move. This will vary greatly from business to business and without knowing more about your business, there is little here anyone can do to provide advice. As for protection, I might be mistaken on this but typically the corporate veil and liability protection does not differ much with exception that some states may not recognize single members LLC as a true LLC and you may need to set up some additional things to be recognized if you are sole owner. You are better off consulting an attorney on this or at the very least, provide more info here so that other members can help.

[BizGuy]

Hi there younbizzy,

There are pros and cons to each and you can find out some more info here: Choosing a Business Entity

Best Regards,

-Adam

[lawinc]

There are restrictions on who can be owners (called “shareholders”) of an S corporation. An S corporation can have no more than 75 shareholders. None of the shareholders can be nonresident aliens. And shareholders cannot be other corporations or LLCs.