New business owners have several decisions to make during the formative stages of starting a business. One of the most important decisions is how you will represent your company to the public. 
 
Deciding whether or not to form a limited liability company or a corporation is a big first step. According to Findlaw, forming an LLC is a good idea if you are looking for maximum flexibility and simplicity. 
 
What are the advantages of an LLC? 
 
Small companies tend to favor LLCs due to the amount of flexibility that they provide. They are also smart for tax designation, as if your business ends up owning property, having an LLC designation can help you avoid double taxes on the property. This tends to come up if the business owns property and that property ends up appreciating in value. If your business is a corporation, then the government will tax both the corporation and the shareholders on the appreciated amount. 
 
What are the disadvantages of an LLC? 
 
One of the biggest disadvantages of forming an LLC is that the structure of the business can become complicated if there are multiple investors and owners. LLCs tend to work better with smaller groups of owners. If you are looking to issue stocks for your company, you can only do this if you have designated your company as a corporation. 
 
Deciding whether or not to form your business as an LLC requires careful thought about the current state of your business and where you would ultimately like that business to go. Certain projected growth patterns work better with LLCs, while others would benefit from either a C corporation or S corporation designation.