Hey there, I live in Chicago and I was wondering if anybody could give some feedback on this. The filing fee for LLC is $500 in Illinois while it's half that price for a corporation... Also, for a full service marketing company (offline and online) expected to run by a few employees, what's the better way to go? Thanks
States get to set their own prices on formation of an LLC or Corporation. Why the state decided one is more than another really doesn't matter, it is what it is. You should talk with a CPA and go over your formation reasons. Both offer liability protection and an LLC is easier to administer, but depending on your income level, you might be able to save some self-employment taxes by issuing a dividend with an S-corp. There is no universal best choice - it all depends on your exact situation.