IANAL<p>I have <i>heard</i> that, if you are looking to sell some time in the future, then a corporation is greatly preferred to an LLC, by investors and the larger companies who would be interested in purchasing your company.<p>A corporation, though, has strict rules (including annual meetings for which you must maintain accurate records, sign contracts as a representative of the corp, etc).  If you do not comply with the rules, then it is possible for someone to &quot;pierce the corporate veil&quot; and come after you personally.<p>IANAL.  I repeat, IANAL.