Why Incorporate My Business As a LLC? 5 Reasons

First of all, if you're new to the realm of official company formation and incorporation, 1980's toys stands for "Limited Liability Company". Some people mistakenly say "Limited Liability Corporation". A LLC is technically not a "corporation", but it is a legal business entity providing liability protection to it's owners.

So, what are the 5 Reasons for starting your own business as a LLC formation?

1) Reduced Liability

One of the most important reasons to form a Limited Liability Company is the reduced liability owners have for the risks of the business. Protect your and your family's finances by 1953 Topps baseball cards starting your business as a LLC (Sole Proprietors do not enjoy this liability protection).

2) No double taxing

A standard LLC is a "Pass-Through Entity" as far as the IRS is concerned. This means that the company is not recognized for taxes. Only the "members" pay taxes on the income that comes to them (or count as deductible any losses incurred). There's no "double taxing": the company paying taxes on profit then the individuals paying taxes on their income.

3) Can be Formed in Any State

You can choose in which state you want to form a LLC based on what's best for your situation. Many people recommend Delaware or Nevada as two of the most favorable to businesses.

4) Tax flexibility- Ability to receive Sole Proprietor, C-Corporation, or S-Corporation status with the IRS

The standard LLC is recognized as a partnership by the IRS, however you can also elect to be considered a Sole Proprietor if only one person, or a C-Corporation or S-Corporation for tax purposes.

5) Flexible ownership structure

A LLC Formation has more flexibility than a corporation in the ownership and organizational structure that you want to establish. It's up to you how much ownership and control you want to give to each person.

Those are 5 Reasons to start your own business as a LLC formation. I hope you find this list informative and useful. As always, be sure to educate Dark Shadows books with good research, surround yourself with professional advice, and think through the options carefully before making such an important decision with your business.

Thanks for reading about why to incorporate your business as a LLC formation!

(While the above is intended to help educate you to make an informed decision and written to provide as accurate and valuable information as possible, please do not consider any of the above as professional or legal advice. Always be sure to get advice from authorized professionals whom you know to be trustworthy.)

Brian Hatano, author

Learn more about href="entrepreneurship.hatanoonline.com/Incorporation/basic-llc-formation-benefits-whos-a-llc-formation-for-and-who-is-it-not-for">LLC formation and Incorporation

href="entrepreneurship.hatanoonline.com/Free-Incorporation-or-LLC-Formation">Free Incorporation or LLC formation for a limited time only!