Most new small businesses want the self employment tax benefits of an S Corporation. They are still faced with a choice becuase an LLC can be taxed as an S Corporation. So the choice of forming an LLC or a corporation can be a difficult one.

Both structures offer great liability protection over your personal assets.

One benefit that I have read about is that LLC's offer greater protection of your business assets if you have a personal liability problem (an auto accident, someone falls at your house and sues you personally). It would be a travesty to lose your business ownership due to a personal liability suit. [Source]

LLC's also have lower administrative requirements, like keeping annual board meeting minutes and electing officers. While not difficult to do, if you neglect this practice for your corporation then the courts could disallow your corporate structure and that would expose you to liability and loss.

LLC's do have a greater price tag in NC. Starting them up is the same ($125 to the Secretary of State), but maintaining them is not equal. LLC's pay an annual fee of $200, while corporations pay an annual fee of $60. Consider that extra fee like an insurance policy that gives you the above mentioned protections.

There is a reason that many people are organizing LLC's rather than corporations these days, but these are just a few of the considerations when starting a new business. Be sure to call and discuss this with me before making a move, as well as with your attorney.

Disclaimer: I am not an attorney and you should not rely simply on the above information when making your decision about organizing your business. These are just things you should consider and discuss further with you attorney so that you make the best choice.