RICHARD BOOTH: Many people think that LLCs should be the form of choice for virtually all small businesses.

EDWARD JACOBSON: The LLC is very flexible, as it relates to allocating income and losses between partners.

ELIOT WAGONHEIM: Lets say, you have 3 partners, but one of the partners is really coming in with most of the money, but does not expect to be heavily involved in the day-to-day operations. An LLC gives you a lot more flexibility in making sure that person receives a return on their investment, but yet is not burdened by all of the responsibilities of running the corporation from a governance standpoint.

FRED PROVORNY: For many entrepreneurs, that is perhaps the best way to go.

EDWARD JACOBSON: An S-corporation has more rigid rules. If you and I are 50/50 partners in an S-corporation, any profits that we receive from that S-corporation, distribution have be equal to our percentage ownership of the stock. In an LLC, it is much more flexible. You do not have those rigid types of rules.