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Why an LLC is Better

Are you considering an LLC?

Trying to decide what legal structure to choose when opening a business can be overwhelming and frustrating. However the most common choice is a Limited Liability Company, or commonly known as an LLC. LLCs tend to be flexible but also protect you from personal liability and they take less paperwork.

Let's look at some advantages to help you to see if an LLC is right for you and your business.

Advantages of an LLC


Set-Up: Starting a Limited Liability Corporation is generally faster than traditional incorporation.


Paperwork: In terms of paperwork, LLCs are very flexible. It is recommended that you have an LLC Operating Agreement so you can choose the specific rules that govern your unique business. Otherwise, your company will be governed by the default rules in your state.


Liability: LLCs allow you to protect yourself from personal liability if your business goes bankrupt or injures someone or if you get in a legal dispute. This means that courts and creditors will generally not be able to take your personal assets. In other words, your business and personal responsibility and assets are separate and or protected. Additionally none else can register a company with the same name as yours.


Tax Flexibility: An LLC is not considered a separate entity from its owners. This means that your LLC will not pay taxes by itself; rather, the owners do on their personal tax returns. It means that the owners can choose to have their LLCs taxed like a corporation. It allows you to elect the way you want to be taxed. No other business formation gives you this much flexibility.


LLCs are easier to form.


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LLCs give you a great combination of flexibility and protection. It is easy to form and gives your business credibility, because when prospects and customers see that you have an LLC they already know that you are a serious business owner. It is easy to form and the setup cost is very affordable.