If I’m creating an armed security business and I would like to know if I should register it as a corporation or a LLC?

Asked on August 26, 2015 under Business Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

From a legal point of view, there is no real difference both an LLC and a corporation provide similar protection from business-related debts and liability, and both can provide similar tax treatment e.g. a sub-chapter S corporation and an LLC with partnership tax treatment both are "pass through" entities. An LLC involves somewhat less paperwork and formalities, both initially and on an ongoing basis, and offers more flexibility, if you have partners, to assign ownership interest and control on a basis other than monetary investment a corporation can make it somewhat easier to sell shares in the business later. The differences, however, are fundamentally minor, and either will basically do the same things for you.


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