ERU Corporate Organization Pros and Cons Matrix Worksheet

Create a matrix charting the pros and cons for LLCs, S-Corporations, and C-Corporations.

Cost: What are the comparative costs of setting up each form?

Ease: What is the relative ease for setting up each form? What steps are required?

Termination: What is the state requirement for continuity?

Public Information: How important is it that your personal information is shared or not shared with the public?

Risk: Differentiate the levels of personal liability that exist for owners in each form of a business. What form provides the best protection to insulate owners from personal liability?

Operation: What form provides the best support and control risk balance for the primary owner’s business and management intentions?

Capitalization: Is there a risk of undercapitalization? If so, what impact will it have on a start-up business? What circumstances trigger the need to raise outside capital to avoid increased liability? Is there a company form that is more conducive to raising capital? How is that accomplished?

Selling: If owners wish to sell their interest in a company, what form best accommodates that situation?

State Taxes: What are the tax liabilities from the state in setting up the business for each form?

Expansion: Which form provides the greatest flexibility in the event of expansion?

Corporate Organization
Pros and Cons Matrix
Limited Liability Company (LLC)
Pros
Cost
Cons
setting up an
LLC in FL
would run a
minimum of $
Annual report fees
125. $125
can run from
covers filing $138.75 to $53.75.
fee and
registered
agent fee.
(required)
S-Corporation
Pros
Cons
C-Corporation
Pros
Cons
Profit Annual
In Florida,
report (with
Minimum
the
supplemental
cost to file in
minimum
Profit annual report
Fee )is $150
the state of
fee would be
(with supplemental
Florida with
$70 (filing
fee is $150)
Higher cost
registered
registered
related to
agent $70.
agent
establishment &
designation)
maintenance.
Ease
Termination
Public Information
Risk
Operation
Capitalization
Selling
State Taxes
Expansion
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