Cooperatives are only slightly harder to start up now because you can have LLP cooperatives (and I agree that you almost certainly want to go LLP rather than simple partnership), but most people have to do some thinking and learning to understand how to work as a cooperative and that is part of what makes it a good format. If you set up a limited company, it’s often treated like a personal sandbox, which is a problem when your poop gets in the way of someone else’s foot – with a cooperative, you have members looking in and joining most cooperative organisations will mean letting someone else verify your business model and agreeing that it’s cooperative.

You can end up with the responsibily of paying off all debts incurred for the business by the partner. So if a person takes on a series of loans, buys a load of technie goods and then skips the country to Brazil – all debts linked to the business you are liable.

It can also be dodgy if you are in a legal partnership with a romantic partner as if you split up the costs of the business can be linked up with the cash flow of the business.

If you are thinking partnership then in most cases you need a limited liability company. If all goes pear shaped you can you walk away and the bankrupt company is liable – not you. You will still own your house, car and shirt.

Again I don’t know about US legislation, but in the UK we do have a strong cooperative movement, which is usually linked to a non-profit limited company. All profit being shared by the members.

Cooperatives have a good track record as they harder to start up, but the procedure forces the members to face up to a lot of business decisions. It is a good format say for a team of web developers and programmers.

LLCs can also be an estate planning mechanism too.

The two best states to incorporate in are Nevada and Delaware, Nevada given a slight edge.

Nevada corps have never had their corporate veil pierced (in other words, provides the best protection for you). Nevada also has no state tax, no franchise tax, and a no sharing agreement with the IRS.

Going back to another commentator’s question about protecting assets, keep in mind by combining different business structures with living trusts you can provide excellent asset protection.

Legally a B-Corporation is incorporated as another form (S or C-corp or LLC) and operates as that form. The only difference is some fancy language in their articles of incorporation (which may or may not be legally binding) and a fee from “B-Lab”.

So, no different and it costs more. – No thanks.

(Quoting from myself) “In the past year, a new legal form of organization has been developed that makes authenticity easier for organizations who seek simultaneously to make money and make a difference. This new organizational form is the B Corporation (where B stands for beneficial).

What’s unique about the B Corporation is that being for-profit and being for-purpose are both defined into the B Corporation’s identity through their articles of incorporation. By legally defining itself as both for-profit and for-purpose, a B Corporation can pursue both for-profit activities and for-purpose activities and think of itself as a for-purpose organization and a for-profit business, without experiencing a conflict between identity and actions.

Designing purpose and profit into the B Corporation’s identity. The B Corporation is a clever innovation on the legal identity of the traditional C Corporation. The legal form of the B Corporation asks an organization “to incorporate stakeholder interests into (their) corporate DNA” by adding legal language that expands the responsibilities of the corporation beyond financial interests and takes into consideration the interests of all stakeholders, not just shareholders.” http://authenticorganizations.com/harquail/2008/05/01/b-corporation-identity-an-opportunity-for-organizational-authenticity/

The fun thing about establishing ones blog/business as a B Corporation is that you get to clarify and set goals against social issues (if these matter to you…) and participate in a bit of a movement. What do you think?

Also, its certainly not wrong when the author suggests that most C corporation have “Inc” after their names, however, that is true of any corporation (chapter C or S). Indeed most state laws require a corporation to use the words “Company”, “Incorporated” or an abbreviation thereof in the name of their entity.

The author also makes reference to LLCs and corporations helping to limit the business owner’s liability, which is certainly true, however, the author leaves out the fact that generally speaking an individual is always going to be legally liable for their own negligent actions no matter what type of business structure they are operating under.

So an individual blogger running their own site can set up John Doe, Inc., however, if John Doe breaks the law the fact that he did so working for a corporation will not serve to protect his personal assets at all.

While an LLC is a very convenient and low-cost way for Americans, a C corporation would give the best benefits if you want to establish a US presence.

Also, would be nice to talk about the differences between states in terms of taxation. If you’re not an American, choosing the right state would be very important for the corporation to pay minimal taxes and lower operating expenses.