Whether you have a business already or are looking to start one, choosing the right business structure is necessary for running a successful business. One of the most commonly used business structures, particularly for small businesses, is known as an LLC. Here are a few benefits of establishing an LLC.
1. Limited Liability
LLC stands for Limited Liability Company. This “limited liability” limits personal liability because it separates the business from the owner's personal assets. Having an LLC means that creditors cannot pursue your personal assets and clients and customers cannot sue you for your personal home or personal bank accounts. This is because the LLC is its own entity and all the activities that occur in the LLC are separate from its owners and employees.
2. Flexible Taxation
One of the key benefits of having an LLC is the ability to forgo extra paperwork. The process of setting up an LLC is simple and affordable when compared to other business formations such as an S-Corp and C-Corp.
3. Increased Credibility
Establishing your LLC gives your business stronger credibility in the eyes of customers, potential investors, and financial institutions.
4. Flexible taxation
Unlike corporations, LLCs do not require a formal management structure. This allows LLCs to have any number of owners, members, or managers. With this flexibility, LLCs can disperse profits however they choose.
5. Less Paperwork
Corporations are required to hold annual shareholder meetings and make lengthy annual reports. LLCs are not required to do those things.
Are you ready to start your LLC? Resource Me makes it simple to start an LLC quickly and easily. Just answer a few questions we'll do the rest by filing your documents directly with the Secretary of State and the Internal Revenue Service. We'll even include some necessary legal documents! You'll receive your completed LLC package via email.