First its important to identify the difference between an incorporation and a limited liability company. An LLC is the United States’ version of a private limited company. An LLC’s business structure combines the taxation of a partnernship with the limited liability of a corporation. On the contrast, an incorporated company is legally separate from the people who have formed it. Directors who purchase shares in the company have responsibility over its operations. In the case of a lawsuit, this limits an individuals liability. Corporations can especially advantageous because it lowers the overall liability of the company and also reduces tax for the owners. In the beginning, it would not be efficient to turn this small company into a corporation because of its size. But overtime, as it grows with its revenue it would surely be a viable option.