[gamblor956]

LLCs are now the most popular form of business entity for new businesses. They offer the structural flexiblity and pass-through taxation of the partnership form while providing the liability protections of the corporate form. Moreover, unlike S-Corps, LLCs can have owners that are other businesses or that are foreign entities.

There are certain circumstances in which LLCs are not the best form--i.e., where certain applicable tax deductions and credits are limited to corporate entities, where VC investment is sought, or where a formal management hierarchy is required by law (i.e., for nonprofits or publicly traded companies). But generally, LLCs should now be considered the default option for any new business.