I would prefer filing my company under a Limited Liability Company (LLC). First of all, an LLC limits personal liabilities because an LLC is legally separate from its owners. LLCs are responsible for their own debts and obligations, and although you can lose the money you have invested in the company, personal assets such as your home and bank account can’t be used to collect on business debts. Your personal assets are also protected if an employee, business partner or the business itself is sued for negligence. In LLCs don’t have to hold annual meetings and usually are not required to keep extensive records. In many states, LLCs do not need to file annual reports. LLCs get the best of all worlds when it comes to taxation. LLCs don’t have their own federal tax classification but can adopt the tax status of sole proprietorships, partnerships, S corporations or C corporations.