What is an LLC?
The Limited Liability Company (LLC) is a hybrid between a partnership and the more traditional corporate structure. An LLC is an unincorporated entity. You register an LLC, you don’t incorporate it.
What Are the Biggest Advantages to Forming an LLC?
- Provides the protection of a traditional corporation
- Allows you to maintain the flexibility and “informality” of a traditional partnership
- Cheaper to maintain (in the long term) than a traditional C-corp or S-corp structured business
- Transfer of ownership is easier than traditional corporate structures
- You avoid the double taxation you encounter with C-corps
- No need to file a second tax return, you can take gains/losses on your personal tax return
- No requirement to be a state resident or a US Citizen to form an LLC.
Do I Need An LLC?
If you think you might benefit from an LLC structure for your current or planned business venture, call Brian Bailey. He will be happy to consult with you before you decide to help you determine what the advantages and disadvantages might be in your particular situation.