Unfortunately, the choice is not so clear. If your goal is asset protection, then generally businesses choose an LLC, however, a single member LLCs in Colorado has little asset protection. Multi-member C corporations and LLCs if properly capitalized and operated with the proper formalities can give its owners asset protection to a degree, if debts are not personally guaranteed.     If your goal is tax planning, an LLC can be taxed as a corporation, disregarded entity (if it is a single member LLC or an LLC owned by spouses), or partnership. Both an LLC and a corporation can be taxed as a S corporation or a C corporation.  * The foregoing information is general advice only and should not be relied upon to take, or fail to take, legal action. No attorney-client relationship is formed by this information. *