LLC vs Corporation vs. Partnership

An LLC is probably most appropriate for a small business, but there are some disadvantages. LLCs cannot sell shares, for that you need a corporation. All publicly traded companies are corporations. You could also keep shares of the profits among partners in a private company by forming a partnership. I think most likely we will form a partnership. Below I list some of the benefits and disadvantages of each.

• All publicly traded companies are seed companies
• 15% tax rate for first 50k
• if you are running a corporation, you are required to select a board with a secretary, treasurer, and president
• partnerships split up profits, file taxes separately

Forming an LLC without a business plan is like going on a road trip without a map. A business plan should have the following elements —

• Marketing plan — local and national
• Analysis of competition and target customer
• financial projections — start up costs, risk, potential problems
• start up costs, risk, potential problems
• revenue forecasts- want to know if you have the ability to make a product
• break even points, profit, cash flow, loss
• staffing plan- unless you are a one man operation you need a staffing plan
• financial statement- asset, liability, expenses
• business accomplishments- training, formal education
• planned summary- goals, money needed, revenue you expect to make

Finally, be sure to set up a company bank account. Be sure to make payments from your company account and not your personal account. Get a credit or debit card separately for your company. Have annual reports and share reports.