I recently had the pleasure of writing for BuffaloInno about some of the issues founders should consider when starting up a business. In particular, whether they should consider setting up an LLC or a Corporation.
In my role as the Program Director for the Entrepreneurship Law Center at the University at Buffalo I work with hundreds of startups a year and see founders struggle with this question every day. They seek advice from friends, the internet, and advisors. Many end up at legal zoom. Many have a vague understanding of the tax implications of choosing an LLC over a corporation and fail to consider the long-term impact on their business.
The simple answer is that are a lot of factors that go into determining which is right for you. Take the time; startup right! And check out my BuffaloInno article!
Fundamentally this is all about determining whether the company is going to be a closely held lifestyle business or a high-growth, venture-backed business. Neither path is right or wrong, but the decision to pursue either must align with the vision, goals and values of a founder.