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pandandesign
02-09-2014, 07:04 PM
Ok, I'm planning to get a liquor license for the restaurant. I was told I either register my dad's business to LLC or Corporation depending on the kind of business. My mom and my dad are the bosses, and I think Corporation requires two or more employers in the business, but I not sure. I want to know is it better to keep the LLC or Corporation? Which is better for us since there aren't a lot of employees?

Rainman
03-31-2014, 05:27 AM
I would advice you to get an LLC license. The good thing about LLC's is that if you make losses or are sued your assets won't be seized to pay your debts or whatever damages may be awarded by a court. And since the operational costs are lower, well . . . it's far much better than getting a Corp license.

harpy
03-31-2014, 08:54 PM
I would advice you to get an LLC license. The good thing about LLC's is that if you make losses or are sued your assets won't be seized to pay your debts or whatever damages may be awarded by a court. And since the operational costs are lower, well . . . it's far much better than getting a Corp license.

This. Definitely start with an LLC.

Just run your business properly and you have nothing to worry about. Get a general liability insurance policy, if needed, for additional protection. A lot of LLC's today run their business as a storefront for shady transactions, but if you're going to run an honest business, LLC is the way to go for the meantime. Take note, it's not the best choice, but if you're just starting out, you'd be happy you registered as an LLC.

Aside from being cheaper, as Rainman above mentioned, LLC's can sue in small claims courts, which corporations can't do. I don't know where you are from, but in the US and I believe, anywhere else, LLC's can represent themselves in small claims, like you would in a sole proprietorship.

The only problem which you need to worry about, however, is getting a loan as an LLC. A lot of creditors know what LLC's are and are not responsible for and they have stricter requirements when it comes to dealing with LLC's.

Edit: Just thought I should add though: when it comes to taxation, LLC's may be taxed as an s-Corp (a small Corporation with limited liability like an LLC), a partnership or as a sole proprietorship so make sure you have all these things detailed in your operation agreement.

MichaelXH
05-14-2015, 01:10 PM
I agree with the consensus here. When it comes to the best business structure (http://fitsmallbusiness.com/llc-vs-s-corp-vs-c-corp/), for many small businesses, LLC's are very appealing. Compared to a corporation, a LLC will be far more flexible. You get much of the liability protection that you would from a corporation, but with a lot less effort spent on record keeping and other maintenance. An LLC has far fewer formal rules to follow than corporations do, making it a very good for many small businesses.

ChadR
07-31-2016, 12:07 PM
I agree with the others here. File it as an LLC taxed as an S-Corp. I've started a few businesses, and that option has been the most advantageous. Just remember to file the IRS form 8832 declaring that status up front. Here's the link to the IRS site giving more details:

https://www.irs.gov/businesses/small-businesses-self-employed/llc-filing-as-a-corporation-or-partnership

fastincnow
09-25-2018, 03:55 AM
I would suggest you to opt for Corporation because C Corporations are great for businesses that sell products, have a storefront and have employees. Businesses that offer services may find the taxes of a C Corp to be too high because of specific tax laws applied to Personal Service Corporations (PSC). It’s also advised not to hold appreciating assets in a C Corp because of the tax treatment of asset sales.

shuvasishphotography
11-06-2020, 08:09 PM
I would advise you to get an LLC license. The good thing about LLC's is that if you make losses or are sued your assets won't be seized to pay your debts or whatever damages may be awarded by a court. And since the operational costs are lower, well . . . it's far much better than getting a Corp license. I agree with the consensus here. When it comes to the best business structure, for many small businesses, LLCs are very appealing. Compared to a corporation, an LLC will be far more flexible. You get much of the liability protection that you would from a corporation, but with a lot less effort spent on record-keeping and other maintenance. An LLC has far fewer formal rules to follow than corporations do, making it very good for many small businesses.

rattanhospital
06-01-2021, 11:40 AM
thanks for sharing with us