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Business structure should be flexible enough to adapt to the ever changing market scenario. Form LLC Corporation if you do not have grandiose plans about your business’s future. Limited liability companies provide personal liability protection and offers flexibility in management. If your business is young and you have plans to grow or expand your business, the basic requirement is capital. There are limits to borrowing money from financial institutions and the riders attached to the usage of such funds may be too restricting to provide flexibility in business decisions. Selling equity for funds will provide you with the needed flexibility. However, selling equity in your corporation will not be easy unless you have structured your corporation and its capital in an appropriate manner. Private investors will expect preferential treatment for putting their faith (and money) in you.

Incorporating yourself is not too complicated if you take care to follow the incorporating instructions to the letter.  Corporations are formed under state statutes and all states provide clear instructions for business registrations in their territory. You may contact over the phone or in person to clear your doubts and other help to incorporate yourself. Articles or Certificate of Incorporation in all states have a standard format and all you need to do is fill it, sign and pay the fees to incorporate yourself. The disadvantages of incorporating yourself are in setting up proper classes of share and/or in drafting the bylaws of the corporation.

To attract private investors or venture funds to invest in your business, you have to give them preferential treatment. Your corporation should have different classes of shares to provide flexibility to investors. And, your corporate bylaws should have all the necessary terms and conditions that allow the board and management to take decisions to allow such preferred stock options to private investors. Consult a professional to set up a proper capital structure and bylaws which will help you with your plans and achieve your objectives.