The "gotcha" with LLCs is that the state laws governing them vary widely from state to state. In most cases, an LLC need not file a corporate return; all business activity can be filed on your individual Federal 1040-Schedule C.

>Yes, those work too. We have found that the "S" Corp. taxes are low enough that the advantages of a true 'Corporation' more than made up for them.
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>>Even better, check out LLCs (limited liability company/charter) ... these are entities that protect you personally but do not have the administrative (read 'tax') overhead that S-Corps do. The benefits vary from state to state, though.
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>>>And if you are a new, small company (owned by one or two persons) check out 'SubChapter "S" Corporations'. The tax liability is substantially less, but the legal liability remains the same.
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>>>>If you incorporate, only you corporation can be sued, and not you. It is a lovely world, but then 350,000 lawyers in this country want business.
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>>>>Tom