Are you starting a new business? Are you wondering what type of business structure is best for your company?
While there are many options to choose from, some entrepreneurs immediately navigate toward the creation of a limited liability corporation (LLC). Not only is this easier to create than many other forms, but there are long term benefits that work in your favor.
For many, the biggest benefit of an LLC is the tax flexibility. In short, the Internal Revenue Services (IRS) does not consider an LLC to be a separate entity in regards to taxes. For instance, a single member LLC is taxed in the same manner as a sole proprietor. Any profits or losses are simply passed through to the single owner.
Secondly, there is less paperwork associated with an LLC. This holds true when forming the business, as well as in the future.
Last, but certainly not least, an LLC allows you to limit your personal liability associated with the company. This doesn’t mean that you are immune to lawsuits and other types of trouble, but it goes a long way in giving you peace of mind.
It’s important to compare the pros and cons of each type of business formation. This is the only way to make an informed and confident decision that will benefit you and your company now and in the future.
With so many benefits, many entrepreneurs choose to form an LLC on day one. If you’re interested in doing so, learn more about this business structure. From there, you can work with the appropriate professionals to create your business and understand your future responsibilities.