The main reason we are looking to incorporate is to prevent my ex-wife from trying to claim a piece of the business. I don't think an LLC has the provisions for that separation since I would have to be listed as a principle which makes my percentage available to her in various loopholes.

Agreed, Wayne. And the value of an LLC versus a Corporation depends largely on where you are. Here in Connecticut, for example, an LLC carries an automatic $250 annual fee.
Thankfully, LLC's are a little more feasible for some, because John Kerry didn't win, thus a pile of hard-working LLC owners aren't suddenly being painted as greedy fat-cats who deserve to support people who don't work so hard.
That said, I've always believed that Corporations are the way to go. Especially for someone in your shoes, Wayne. Set it up as an LLC, and you might as well make your ex one of the members.

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Wayne, have you looked at all the incorporation websites like www.mycorporation.com? They have some good information about how to incorporate, why to incorporate and issues associated with it.

We've thought about it several times but our attorney said as a new corporation no bank would lend us money anyway without our personal signatures. Signing the note personally pretty much voids any legal protection the corp provided... so we haven't done it yet.

Now that we're a 5 year old company with more credit, I think we could reconsider. Also, I believe as a corp. you have to identify yourself as a corporation (either through inc. or corporation or incorporated) on company documents, etc.

Probably a good idea to consult with an attorney about it also... just to make sure you have everything in ordre. Good luck!

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