- Legal vs tax
- The LLC is the legal entity. Disregarded, S-corp, and C-corp are tax classifications of that same LLC.
- Liability
- Generally separates business debts from the member if formalities and capitalization are respected.
- Default federal tax
- disregarded
- Other federal options
- s corporation, c corporation
- Formation / maintenance
- Articles/certificate, registered agent, EIN, operating agreement, and often foreign qualification where you operate.
- Public-record notes
- What appears on the public record is a state choice (member vs manager listing). That is disclosure design, not a way to hide from lawful process.
- Succession
- Operating agreement and, if used, a trust or estate as member. Membership transfer is not automatic.
- Investor fit
- Awkward for priced equity rounds. Convert or recapitalize before institutional money.
Disqualifiers
- Need multiple members today
- Need preferred stock
Professional review: cpa, attorney, insurance.
Related: multi-member-llcs-corporation-electionrevocable-trust