A limited liability company offers the best of a partnership and a corporation, without any of the downsides of either. It really is the best structure for most small businesses and is something that you should consider if you are an entrepreneur. There are many benefits to setting up your business as an LLC.
5 benefits found with an LLC are found below:
1. Protection from personal liability - Personal asset protection should be at the top of mind for most entrepreneurs, and a LLC can offer this. You have much more liability exposure when you own a business, so you need to make sure you are shielded from any personal liability in case your company is sued.
2. Income tax handling - An LLC offers you choices when it comes to handling income taxes that you do not have as a sole proprietor. It should be the goal of all entrepreneurs to be as smart about income taxes as possible, so consider an LLC to assist with this matter.
3. Legitimizes company - Lets face it, as a business owner you most likely are competing against many other businesses. You need to make sure that potential customers see you as a real business, and operating as an LLC brings this credibility to your operation.
4. Operational simplicity - Creating a corporation is another option that gives you certain tax and personal liability benefits, but they are generally more difficult to operate. A corporation has annual reporting requirements that just are not there with an LLC, making the limited liability company a great choice for low maintenance.
5. Inexpensive to create - By utilizing one of the several reputable online formation services, the formation of your LLC will not cost you a lot of money. An LLC is one of the most affordable business structures as there is no ongoing yearly costs to maintain your structure, unlike a corporation.
If you are an entrepreneur, then you really need to consider forming an LLC so that you can receive the many benefits that this business structure offers. Any serious business owner understands the importance of choosing the correct business structure, and a limited liability company may be right for your situation. - 15246
5 benefits found with an LLC are found below:
1. Protection from personal liability - Personal asset protection should be at the top of mind for most entrepreneurs, and a LLC can offer this. You have much more liability exposure when you own a business, so you need to make sure you are shielded from any personal liability in case your company is sued.
2. Income tax handling - An LLC offers you choices when it comes to handling income taxes that you do not have as a sole proprietor. It should be the goal of all entrepreneurs to be as smart about income taxes as possible, so consider an LLC to assist with this matter.
3. Legitimizes company - Lets face it, as a business owner you most likely are competing against many other businesses. You need to make sure that potential customers see you as a real business, and operating as an LLC brings this credibility to your operation.
4. Operational simplicity - Creating a corporation is another option that gives you certain tax and personal liability benefits, but they are generally more difficult to operate. A corporation has annual reporting requirements that just are not there with an LLC, making the limited liability company a great choice for low maintenance.
5. Inexpensive to create - By utilizing one of the several reputable online formation services, the formation of your LLC will not cost you a lot of money. An LLC is one of the most affordable business structures as there is no ongoing yearly costs to maintain your structure, unlike a corporation.
If you are an entrepreneur, then you really need to consider forming an LLC so that you can receive the many benefits that this business structure offers. Any serious business owner understands the importance of choosing the correct business structure, and a limited liability company may be right for your situation. - 15246
About the Author:
Author Caressa Waechter thinks entrepreneurs should consider using an incorporation service company to form their limited liability company. Incorporation services make it easy and affordable to form an LLC.
