Patent Attorney and Founder
If you decide to go out and try to make revenue with your product or service, definitely get into some sort of limited liability entity. If you are holding stuff, for example, if you’re holding real estate or you’re holding intellectual property, I recommend placing those assets into a limited liability company. The reason is because you’re just holding stuff.
That being said, if you are doing stuff, if you are basically like a dentist or selling yourself, I recommend more of a quarterback right services because you get better tax consequences depending on how you decide to be taxed, either as an S corporation or a subchapter C corporation, most likely subchapter S corporation, and we’ll get into that a little bit later.
I like corporations as a legal entity because corporations have been around forever. We know what the law is on those, and one of the worst cases I studied down in Oregon when I went to law school was a Washington case about what not to do with corporations. If you follow the rules with the corporation, the liability protection for you is pretty much sound. The whole idea for setting up a business entity is to provide a legal barrier between you and your creditors.