I currently have a commercial painting business but haven?t incorporated yet. I don?t know if I should become a corporation or an LLC. What is the difference?

Michael Greiner?s Advice:

There was a time that corporations and LLCs were very different entities. That time has come and gone. At this point there is very little difference between the two entities. Either way, you have protection from lawsuits against you personally. Doing commercial work as you do, getting that limitation on liability is critical. As a result, you need to do one or the other, and soon!

The big remaining difference between the two is as follows. LLCs are better for smaller businesses that are only operating in one state. It is still easier to account for an LLC?s tax liability on your personal tax return than for a corporation. A corporation, however, is better where there are multiple shareholders or the company operates in a number of states. Even at this stage, the corporate entity is still more widely recognized and respected than an LLC.

But whatever you do, do something quickly. Every day you are working without this protection, you are jeopardizing your personal assets ? including your home.

Additional information for enabling you to make the best choice for your own situation is included in
Get Paid! Big Business Collections Strategies for the Small Business Person.