Key
Benefits
Creating an LLC
typically provides the business owner with the
following
advantages:
Limited liability
protection. Owners are not held personally
responsible for
business debts and liabilities.
Pass-through taxation.
Typically an LLC does not pay taxes at the
business
level. Income/loss is reported on the owners’
personal tax returns and any tax
due is paid at the individual level.
No ownership
restrictions. Typically an LLC does not pay
taxes at the business
level. Income/loss is reported on the owners’
personal tax returns and any tax
due is paid at the individual level.
Flexible management.
Limited liability company owners have
flexibility in
structuring company management.
Fewer ongoing
formalities. LLCs have less annual paperwork
than, and do not
face the meeting requirements imposed on C
corporations and S corporations.
Credibility.
Forming an llc may help your business be
perceived as a more
legitimate business than a sole proprietorship or
general partnership.
Consent to add owners.
Written consent of LLC members must be obtained
prior to increasing ownership in the company or
adding new owners.
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