More entrepreneurs today are taking steps to protect personal
assets and take advantage of a flexible tax structure by forming
a Limited Liability Company or LLC.
A Limited Liability Company is a legal form of Business Company
granted in the United States offering limited liability to its
owners. It is similar to a corporation, but a more flexible form
of ownership, more suitable for smaller businesses with a
limited number of employees or owners.
For new business owners a Limited Liability Company can be an
attractive solution to forming a company especially considering
the many benefits to having an LLC. For starters, having a LLC
involves maintaining much less paperwork and recordkeeping as a
corporation would have.
Many of the primary benefits consist of the various ways you
can set up taxation. For many business taxes alone can be a
complicated subject matter. As an individual owner you can
decide how you wish your taxes to be applied.
For instance, a LLC can elect to be taxed as a sole proprietor,
partnership, S-corp or corporation, providing much flexibility.
Also using the default tax classification, profits are taxed
personally at the member level, not at the LLC level.
Consultation by a professional legal service can be vital to
identifying the best option for your business.
LLC's also provide some of the same protections that
corporations have for protecting the owners and members from
liabilities and debts of the LLC. If your business should ever
face insolvency your personal assets would be protected.
Yet there are still some vital rules to keep in mind when
running a Limited Liability Company. Proper management of your
company financials is important. It is crucial to keep the
business and affairs of the LLC separate from members or
manager's personal affairs. This means establishing a separate
bank account, and maintaining separate records from the LLC.
It only takes one person to form a Limited Liability Company.
You can prepare the legal paperwork and file it yourself, or use
a professional legal service. The prices to forming a LLC can
vary depending on the state which will charge some type of
annual fee to maintain an LLC.
A Limited Liability Company also has an unlimited lifespan and
ownership can be transferred to any person you wish.
If you haven't already discovered what a LLC can do for you and
your business there a number of available resources online you
can explore. A lot of time and effort goes into developing a
business and having the proper business structure can be
critical for success.
Kennard McGill: To learn more about forming a Limited
Liability Company go to http://www.legaldocumentfinder.com
Kennard McGill is an online publisher and writes articles on
numerous topics including online legal services.