Hello everyone,

I am starting a technology company. It will be a one-man operation (only me). I was wondering what would be the best route to take since I lack business knowledge. Corporation or LLC?

I am under 30 years old and am single (info provided for tax purposes). There is no physical address for the business.

probably a Sole Proprietorship right?

You need to be careful because some businesses open you up to personal liability for debts and claims. You may want to speak with an attorney to make sure that you are protecting your personal assets from the company debts. Have you browsed through the information in LawInfo's Free Legal Resource Center to learn more about your issue yet? See: http://www.lawinfo.com/consumer.html. Search the "Free Legal Resources" tab, or browse the Consumer Resources. Good luck.

The primary issues to consider in a choice of entity decision are: 1) personal liability; 2) tax considerations and 3) ease of governance.

As to personal liability, a Corp and LLC offer basically the same limited liabilty, although it should be noted that you are always liable for your own personal actions whether a Corp or LLC exists.

As to taxation, a traditional Corp is subject to taxation at the entity level, while an LLC offers pass-through tax treatment.

As to corporate goverance, an LLC offers greater ease of corporate governance than a Corp.

__________________
Brian J. Thompson, Attorney and CPA
203 N. LaSalle St., #2100
Chicago, IL 60606
www.BrianThompsonLaw.com