The decision between forming an LLC or corporation is one of the most consequential choices a business owner will make. This choice affects everything from daily operations to long-term exit strategies. Key Considerations Tax Treatment: LLCs offer pass-through taxation by default, while corporations face double taxation unless S-Corp election is made. State-specific tax implications vary significantly. Liability Protection: Both structures offer limited liability, but the formalities required to maintain that protection differ substantially. Flexibility and Governance: LLCs provide operational flexibility, while corporations offer a more structured governance framework that may be preferred by institutional investors. Making the Right Choice Consider your growth trajectory, funding needs, and long-term goals when selecting your business structure. A fractional general counsel can help you evaluate these factors and implement the right framework for your specific situation.