Why many owners choose an LLC
An LLC is simple to run, has few formal meeting requirements, and by default passes profits through to the owners’ personal tax returns. The owners set most of the rules in an operating agreement.
When a corporation fits better
A corporation can be the better choice if you plan to raise money from investors, issue stock or options to employees, or eventually sell or go public. Investors often expect a corporation.
Taxes deserve a separate look
Entity choice affects how the business and its owners are taxed, and the District treats some unincorporated businesses differently from corporations. Confirm the current rules with a tax professional before you decide.
Questions to answer before you file
How many owners will there be? Will outside investors come in? Do you want profits taxed to you directly? How will owners exit? Your answers usually point to the right structure.
This guide is general information, not legal advice for your situation.