When starting a new business, one of the first weighty decisions that needs to be made is choosing an entity type. This is especially cumbersome as there are many entities to select from, including sole proprietorship, general partnership, corporation, limited liability company, limited partnership, limited liability partnership, and business trust. While such a wide array of choices may seem daunting, in actuality these choices are often narrowed down to just two: the corporation and the limited liability company (LLC).
The corporation is the oldest form of statutory business entity in the United States, with the first general corporation law enacted in 1811 by New York. Contrastingly, the LLC was created much more recently, with the first LLC act adopted by Wyoming in 1977. While the corporation still remains a widely used statutory business entity, the LLC has caught up in popularity. In fact, in most states now, more LLCs are being formed each year than corporations.
Because of its growth and the general awareness and use of LLCs within the business community, more and more legal professionals are being asked by their clients to compare the LLC as an entity to the corporation. The purpose of this webinar reference book is to assist the legal professional in making this comparison. As such, this webinar reference book delves into these two popular entity types and explore their similarities, differences, benefits, and potential pitfalls. For instance, the corporation and the LLC will be compared and contrasted in areas including taxation, formation, management, ownership, compliance issues, doing business in foreign states, and dissolution.
Please note that before choosing an entity type, drafting or filing documents, or entering into any of the statutory transactions discussed within, it is necessary to research and follow the requirements of the specific governing state law. In all, readers will come away with an understanding of both corporations and LLCs in order to better navigate and recommend appropriate business entity choices.
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Watch the “Corporation vs. LLC“ on-demand webinar. Contact us at (844) 316-8948 (Toll free US) or visit www.ctcorporation.com.
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