The biggest deciding factor that people choose a particular business structure is when it comes to “Tax Liability”. An LLC is a very attractive business structure because is easy to form, is not double taxed such as with a “C-Corp”, however there are some drawbacks. For example, I’m sure you have not thought about (who would), but if your business is an LLC, if something would to happen to you and you pass away, the business dissolves.
I’m in a similar situation; I have three online projects I’m trying to launch at the same time. Not because of money, but because I strongly feel that I’ve found a niche, there’s research to back up the need in the market, and because I’m so passionate about my ideas that I’m launching them at the same time.
BACK TO LLC. I’m planning to file an “S Corporation” for the parent company (for example BrianGroup, Inc.), which is a great way to avoid the double taxation issue. The gains/losses are reported on YOUR individual income tax for federal purposes, although you still need to file form 1120S, which is the federal income tax form for your business. This means that any startup costs, you can claim as business expenses in your income tax return, which will reduce your tax liability.
An “S Corporation structure does not dissolve it something happens to you, it’s a separate entity, meaning if your company gets sued, you will only loose what ever you have invested in the business; not your house, not your personal back account. For more information, check out this link for Legal Zoom, which compares all the options available, once you know the structure you want, shop around for an overall best deal.