An LLC is almost always better, since as the term "limited liabiity company" implies, it will protect you from most business debts, judgments, obligations, or liabilities, so long as you do not personally guaranty them: thus, it will provide protection for your personal assets (e.g. home; money in personal bank accounts; etc.) if the business is sued for violating or breaching a contract or lease. (No protection is 100% perfect, but you are *much* safer with an LLC than a partnership.)You can create an LLC that gives you the same tax treatment as a partnership--i.e. no "double taxation" with profits being taxed once at the business level and then again when distributed to the owners. Instead, as with a partnership, any profits or losses (losses provide tax deductions, by the way) will be attributed directly to the owners (called "members" for an LLC) and taxed as part of their personal income.