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Loren, Attorney
Category: Business Law
Satisfied Customers: 28563
Experience:  30 years experience representing clients .
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I am starting a technology business with my 50% partner. We

Customer Question

I am starting a technology business with my 50% partner. We are trying to decide between an LLC and a C-Corp. (We are in Michigan) In our case an S-Corp probably won't work too well. I've read a lot about the pros and cons of each. And we have valid reasons why a C-Corp might be better. What I can't seem to find is how much harder it is to manage a C-Corp than an LLC. Most literature says a C-Corp is more complicated and does not elaborate. Can you please give me more detail on the complexity of running a C-Corp?
Submitted: 3 years ago.
Category: Business Law
Expert:  Loren replied 3 years ago.
Thank you for using JustAnswer. I am LawGuy and I will do whatever I can to answer your question.

Most people prefer an LLC over a C corp, where possible, for 2 reasons. First, the corp is double taxed. Once on the corporate income and then again on your personal income tax. All profits in an LLC are passed through to the members. The LLC itself is not taxed.

Management is another area in which the LLC has more flexibility than a corporation. A corporation has bylaws, a board of directors and officers. An LLC is usually run by a manager or managers pursuant to an operating agreement. The operating agreement can provide as much flexibility as you would like. You can designate how you would like profits split, which decisions require votes, etc.

I hope this is helpful.

Expert:  Loren replied 3 years ago.
I just wanted to check back to see if everything worked out ok.

I am here to assist you if you need anything.


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