If I’m starting a DJ Business, which would be the best fit for me – a corporation or LLC?

UPDATED: Oct 21, 2014

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If I’m starting a DJ Business, which would be the best fit for me – a corporation or LLC?

I like to keep it simple and yet I do not want one of my customer to sue me and try to get my personal assets.

Asked on October 21, 2014 under Business Law, Michigan


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Either an LLC or a corporation would protect you from business-related liability, and either one can be selected to be a "pass through" entity for tax purposes, so there is no "double taxation" from the LLC or corporation first being taxed, then you being taxed on the money you receive from it (instead, the profits and losses flow through directly to you). There is actually relatively little to choose between the two of them in terms of liability protection and tax consequences, but an LLC involves less formalities and paperwork. For a small business, it's generally a bit easier to set up and run--for example, there's no need to keep corporate minutes. My own small businesses are LLCs, and I recommend LLCs to my small business clients.

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