LLC or S-Corp

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Sir_Poop_Alot

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I'm trying to start a company but unsure whether to establish it as an LLC or as an S-Corp. Anyone have any prior experience(s) setting up an corporation. This will be a software corporation and potentially want investors. I'm located in the dumpy state of Michigan ;) Any advice or recommendation would be appreciated.
 
For now it's going to be just me. I do have 2 other guys I'm working with that are co-founders, but due to the fact they are not in the same state and one of them is not even in the same country, I'm force to be a one man show. They will eventually get paid as employees. There is no source of income yet. Once an entity is started then i can proceed to open a business checking account and etc.
 
While I doubt this thread will fly for long as it's not software related - this sort of thing belongs in the paid genmay section as its off topic but I will pitch in some.

You should probably talk to a local business lawyer and an accountant. Setting up either company type should really only be done once. Both types have slightly differing advantages and some will be dictated by your states laws. A lot will also depend on how you think certain aspects of the company will grow in the long term and of course financial. I formed my company as a C-Corp - subchapter S election because thats what fit the needs based on my consulting with both an attorney and an accountant. They both had a LOT of questions about my expectations of liability, projected staffing, projected finances, how things will be funded immediately and a lot more. The choice you make now will affect a lot of things going forward as far as how your taxes will need to be handled, company books will be managed, etc.
 
I would also speak to an accountant AND lawyer together if possible.

Although with your situation, you will most likely be fine with an LLC. Under ANY circumstances, do NOT form a partnership in America. SO many ways to get F'ed over.
 
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