Author: 
Dion Persson
Subtitle: 
Use a limited liability company for your small business in almost all cases
Important Tip Many professional small businesses use Subchapter S to avoid some self-employment taxes. A limited liability company can make a Subchapter S election, so there is no need to be a corporation to take advantage of the opportunity to reduce employment taxes.

A limited liability company should almost always be used for a small business. A limited liability company is easy, inexpensive and protects an owner from liability to the same extent as a corporation does. A small business owner can find loads of detailed information on the advantages and disadvantages of different entities but should almost always use a limited liability company. You may want to consider other forms in the following circumstances:

  • if there are many owners or stockholders
  • if the company is seeking significant venture capital financing or considering a public offering
  • if you (hopefully working with a good tax advisor) decide upon another structure for specific tax planning opportunities
Additional Information
Important Tip: 
Many professional small businesses use Subchapter S to avoid some self-employment taxes. A limited liability company can make a Subchapter S election, so there is no need to be a corporation to take advantage of the opportunity to reduce employment taxes.
Marketing copy: 
Choosing a Form of Entity