IANAL and I am not an accountant. The short answer is that a corporation (assuming C-Corp) is subject to double taxation. Meaning that you pay personal taxes an

IANAL and I am not an accountant. The short answer is that a corporation (assuming C-Corp) is subject to double taxation. Meaning that you pay personal taxes and corporate taxes. With an LLC (or S-Corp) you only pay personal taxes. The second part of your question, why an LLC over a Corporation. Well, a corporation has shareholders, where a LLC has members. Two completely different structures. Shareholders own stock which is easily (or easier to) transferable. Finally, Delaware is preferable because it has specific courts for handling business law. The judges tend to be well-versed and the laws are "business friendly". The decision really comes down to what you intend to do with the business (if you plan to raise funds through equity you will need to sell shares which, for basic purposes, require a corporation), who is going to be involved in the business, and what your long-term goals. You should consult with an attorney or accountant prior to making a decision.