What is an LLC (limited liability company)?
A limited liability company is a corporate structure in the United States where the owners are not directly or personally held liable for the company’s debts. Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.
While the limited liability feature is similar to that of a corporation, the availability of flow-through taxation to the members of an LLC is a feature of partnerships.
Can forming an LLC protect the owner and their personal assets?
It provides protection and structure to formal businesses. Many business owners turn their companies into an LLC to enjoy an array of legal protections and benefits, which can dramatically affect the success of their enterprise. Read on to find out more.
Does an LLC work for small businesses?
By organizing a company into an LLC a business, owners can get liability protection. This means that they can enjoy the same rights as a large corporation, with a more relaxed structure and administration set up. It is possible for a small business owner to keep things simple and avoid an LLC structure. However, at the expense of someimportant legalprotections.
What can it do for me?
An limited liability company provides a company with its own legal identity, in the eyes of the law. The company can have a bank account, accept credit cards make money, own property, sign agreements, and even go through lawsuits. These articles provide many benefits, including financial protection. Because an LLC is a separate entity, the personal finances of owners won’t be involved in business affairs.
This is a great safety net, because it ensures that owners won’t risk everything for the sake of their business. Moreover, an LLC will protect business owners from personal liability, and provide different tax options. There are many different options and each state has different laws and regulations. Get in touch with a legal professional to find out more today. If you are ready to start we recommend this service IncForFree.com