Currently, I do not have an idea for my own business, but I would feel most comfortable with a

limited liability company (LLC). Tax flexibility and limited liability are key factors. As LLCs are
hybrid legal entities, they have the tax of a partnership and a corporation's operating
advantages. The LLC members may opt to be taxed like a corporation, but I don't see
any benefit of being 'double-taxed' for corporations.
Consequently, the responsibility of Member-Owners is limited to the value of capital
contributions or investments. In general, I cannot be held personally liable for any debts or
judgments against the company. A circumstance in which the courts decide to pierce the
corporate veil might, of course, leave me liable.
LLCs have certain drawbacks that I am not particularly thrilled about. The first is that different
regulations are used by each state. As there is no uniform state LLC law, starting an LLC, and
knowing how it will be done in various states becomes more tedious. Diversity of citizenship
may also come into play with LLCs being a citizen of the states. So, legally, if necessary, the
federal court may exercise diversity jurisdiction.
I see no significant problems with this route if the other members and I take the time to
develop a concrete operating agreement. I would say that most LLCs get messy when an
operating agreement is not well defined in writing. If this is the case, the result will be governed
by the State LLC Statute.