If you want your business life to be simpler, LLCs are the way to go. Unlike a corporation (S Corporations and C Corporations are all corporations, right? Right!), LLCs in California don’t have a requirement to hold meetings or keep annual minutes, unless they agree to do so. LLCs are also automatically taxed as a Sole Proprietorship if there’s one owner, and taxed as a partnership for multiple owners, giving LLCs the advantage when it comes to taking on new partners and making distributions favoring one partner over another, so long as certain rules are met. S Corporations, on the other hand, are much more rigid in how you can structure distributions. So if simple and flexible is the priority, LLC is the better choice.