When you combine a corporation and a partnership, you get a limited liability company. This business structure is a great choice for small business owners as it has many of the benefits of both a corporation and a partnership, while being a superior choice to being a sole proprietor.
You will find below 5 of the many benefits a limited liability company can offer an entrepreneur:
1. Personal asset protection - One of the best reasons to create a limited liability company is so that you are protected from personal liability in case your business ends up being in a lawsuit. A properly created LLC can offer personal asset protection and is just one of the many reasons why you really should consider forming an LLC.
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. Ease of operation - As a business owner, you can always choose to form a corporation, which can give you similar tax and liability benefits you get from an LLC. However, a corporation often times has certain requirements you must do on an annual basis in order to maintain your business structure. Since an LLC does not have these same requirements, there can be less you have to concern yourself with operationally.
5. Low cost - When you form your LLC online, it will not cost you a lot of money so it is within reach of most entrepreneurs. Also, there is no ongoing yearly costs to run your LLC, so you are looking at just a one-time fee.
Forming an LLC is a great choice for many small business owners, and offers you many benefits that you just cannot get as a sole proprietor. If you want to be a serious entrepreneur, then you really need to see if a limited liability company is the right choice for your situation, and it most likely will be. - 21365
You will find below 5 of the many benefits a limited liability company can offer an entrepreneur:
1. Personal asset protection - One of the best reasons to create a limited liability company is so that you are protected from personal liability in case your business ends up being in a lawsuit. A properly created LLC can offer personal asset protection and is just one of the many reasons why you really should consider forming an LLC.
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. Ease of operation - As a business owner, you can always choose to form a corporation, which can give you similar tax and liability benefits you get from an LLC. However, a corporation often times has certain requirements you must do on an annual basis in order to maintain your business structure. Since an LLC does not have these same requirements, there can be less you have to concern yourself with operationally.
5. Low cost - When you form your LLC online, it will not cost you a lot of money so it is within reach of most entrepreneurs. Also, there is no ongoing yearly costs to run your LLC, so you are looking at just a one-time fee.
Forming an LLC is a great choice for many small business owners, and offers you many benefits that you just cannot get as a sole proprietor. If you want to be a serious entrepreneur, then you really need to see if a limited liability company is the right choice for your situation, and it most likely will be. - 21365
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.
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