With an LLC or Corporation, the risk involved is less, and business owners have better control over how taxes affect their earnings. It also unlocks your ability to open bank accounts, enter contracts, hire employees, and get business licenses and permits. LLCs and Corporations are business entities formed by filing the requisite paperwork typically with the Secretary of State and have specific compliance formalities, which tend to cost more regarding the filing fee and other reporting requirements. However, these are offset by the advantages and protection you get: limited liability and Tax Flexibility.

Limited liability is when the owners and investors do not become personally liable for debts and other obligations in a business.

Tax Flexibility or Benefits: There are various tax advantages. LLCs and corporations have different tax options to choose from, and you can pick the option that will save your business the most money or allow for the most significant opportunities.