Not to generalize but often a LLC is the easiest and provides you with liability protection when starting an online business. Make sure you know the potential tax and liability consequences of different business models.

It's a quesion that I've also searched an answer for. But I've heard that starting a LLC is not a good idea if you live in California, the valley and that everybody prefers Inc.s Is that really so?   Thanks!

I Agree totally with brandons... Look at your States rules concerning annual fees and taxes for each entity type... LLC are all the craze with many accountants and law firms but many States have a much higer fee and tax schedule for this type of entity... I find a plain old vanilla S Corporation... is perfect

I've had alot of luck with using LLCs in my area,having said this of course, your mileage may vary :) Do check out state laws/rules concerning corps & LLCs, I was shocked to find out how Ohio LLCs were different than NY LLCs , as well as Nevada and Delaware ones. Do your homework , it could save your biz some day :) Brandon Schlichter 1337 Ventures Inc HotNewHipHop -- This post was edited to remove a commercial link. Read our discussion policies for more Community best practices.

Since this is going to be a multi-member LLC, make sure you talk to a lawyer. Creating the LLC will be the easy part. It's when the members go separate ways or have a change of priorities that makes any partnership complicated.

I've used LLC's very successfully for all of my businesses online and offline. Those get my best recommendation :)

darkazrael23 - Selecting a business structure is a decision that is very specific for each business and is difficult to generalize. The amount of liability you assume and how you are taxed by the government is dependent on your decision. For a quick breakdown of the pros/cons of each business type, read this article from Business.gov: Differences in Legal Structures - Which Structure Is Right For You? Please let us know if you find this article helpful, and if you have additional questions please post them here. Message Edited by NicoleD on 02-04-2010 03:51 PM