Because they can be treated as a disregarded entity for tax purposes, owners are protected much more than a sole proprietor and they seemed very easy to set up.

One thing I noticed about the limited liability is that if you attempt to establish any type of financial relationship – from bank accounts and credit cards, to credit accounts at office supply stores – they require the owner to cosign for the LLC!

I guess what pushed me over the edge – since I didn’t have any guidance – was knowing that some huge companies are set up as LLC’s (such as Amazon.com).

I may also have been cranky in my pre-coffee hours.

In my work, I encounter LLCs fairly regularly, and rarely are they actually properly set up. Generally this is because an owner did it themselves and missed something (though this is also sometimes the case with an attorney-assisted LLC). Since I think it is more difficult to miss something essential with a corporation, hence my preference (if one needs to form an entity at all).

On the point about liability limitation, I don’t know what to say, aside from anecdotally: I have yet to encounter an LLC where I couldn’t reach the owner’s personal assets. Your state’s LLC statute may be more forgiving.

As far as points three and four go, I will have to follow up with sourcing, though I will endeavor to shortly (my father is coming to town for a visit).

Thanks for taking my commentary in the spirit in which it was intended. And thanks for your blog.

Best regards,

Anthony