Is A Limited Liability Company  (LLC) Right For Your Business?

A limited liability company (LLC) is a legal entity structure with both an ownership and a level of protection for the specific owners. What defines an LLC is its difference in tax treatment compared to that of a sole proprietorship or general partnership — it's treated as if it were simply another owner, not subject to taxation on its own. The benefits of starting an LLC include limited liability for the owners, allowing them to avoid personal liability, and providing flexibility in terms of how their business can be structured. One downside is that many states do not allow LLCs due to their complex tax status within strict statutory guidelines.

Here is a list of the main benefits of forming an LLC:

Personal liability protection for owners.

Owners can start or buy businesses operating under their own names instead of running it out of their bank accounts. They do not need to deal with the confusion and stress that "doing business as" might bring to bear.

Limited liability, which protects your personal assets from being used for company debts and liabilities. It also frees you from personal bankruptcy due to indebtedness for your business, if it were to fail. In other words, you would not be personally responsible for its debts and losses.

Optional tax status, which means your business operates with a lower tax rate than a sole proprietorship or general partnership. This is helpful in allowing your business to have a better cash flow and higher net income than if it were subject to the same rate as any other business entity.

Investment protection for equity owners (also known as LLC members). For example, when making an investment with different owners of an LLC, each owner may lose a portion of his/her share in the event someone leaves the LLC; otherwise they do not need to worry about their investment being reduced if one of them left or died while they were still involved with the company.

State tax advantages. The LLC is an entity whose taxation sits in between that of a sole proprietorship and a corporation. In other words, it gives you some of the advantages of being incorporated without the difficulties associated with setting up a corporation, while at the same time offering protection from personal liability.

Protection from lawsuits filed against owners personally. LLC and corporate owners are not liable for their business debts simply by virtue of being part owners. This limited personal liability will protect your personal assets from lawsuits filed against your business by someone else or that stem from a business contract or operation you have helped to facilitate.

A well-known example of an LLC is Microsoft Corp. Founded in 1981, Microsoft established itself as a major player in the computer software industry only four years after it started. It has since gone on to become one of the largest companies in the world.

LLC Mixed Blessing For Departing Members | Business Articles | Business Solutions Magazine 

If you are pondering whether or not an LLC is right for your business need, then it is very important to be aware of how LLCs work within certain states and/or for certain people. For example, if you are considering forming an LLC but plan on leaving the company any time soon, then second thoughts should be turned to other structures like a corporation.

Article by: Articles of Inc.

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Business Articles: Start an LLC in Your Business? | Business Articles | Business Solutions Magazine 

If you are considering starting a business, or if you already have a business, then an LLC may be right for you. However, before you make this decision it is important to be aware of the tax and legal aspects of forming an LLC within your state. Below are some important points to keep in mind:

Article by: Articles of Inc.

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Business Articles: LLC Vs. Corporation | Business Articles | Business Solutions Magazine 

In the business world, it's common belief that a corporation is better suited than an LLC. However, the reality of the situation is that there are many situations in which an LLC can provide its owners with significantly more protection than a corporate entity.

Article by: Articles of Inc.

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Business Articles: 3 Reasons To Form An LLC | Business Articles | Business Solutions Magazine 

There are many different ways in which you can structure and run your business. This article will discuss the benefits of forming an LLC.

Article by: Articles of Inc.

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Business Articles: Are There Disadvantages To Forming An LLC? | Business Articles | Business Solutions Magazine 

Although there are many advantages to forming an organizational structure as a limited liability company, it is important to realize that there are disadvantages to doing so as well.

Article by: Articles of Inc.

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Business Articles: Advantages of an LLC | Business Articles | Business Solutions Magazine 

As an LLC or Limited Liability Company, the owners are not personally liable for the debts of the organization. In this article we will discuss the other benefits and disadvantages of an LLC.

Article by: Articles of Inc.

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Bibliography about UK Limited Liability Companies: http://www.accountingweb.co.

Conclusion:

There have been two main reasons for this change of mind: the need to attract investors and the desire to provide better protection for business owners. In other words, now that becoming a sole proprietor is no longer attractive, people are willing to pay a flat fee to be part of an LLC without having it get picked apart by the IRS. Also, by formulating this type of business structure, you shield yourself from liability while keeping your own identity as an entrepreneur.

Articles on UK Taxation: http://www.accountingweb.co.uk/tax/index_htm

Articles on UK Accounting: http://www.accountingweb.co.