Limited Liability Company
A limited liability company is a corporate structure in the United States where the owners are not personally liable for the company's debts or liabilities.
Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.
LIMITED LIABILITY COMPANY
PROS & CONS
A limited liability company must file articles of its' organization with the state, it has a more flexible structure than a corporation.
An LLC protects owners and shareholders from personal liability against debts and judgments.
Ann LLC can choose if it wants to be taxed as a sole proprietorship, partnership, S corporation or corporation.
FEWER COMPLIANCE OBLIGATIONS
In most states, and LLC does not need to have an annual meeting or a board of directors and bookkeeping is easier as there is less paperwork.
CONTINUED BUSINESS ABILITY
An LLC is an entity of its' own and can continue to do business after the owners sell or pass away.
LIMITED INVESTOR INPUT
You can allow limited investor input.
PASS THROUGH TAXES
Pass through taxes means that profits and losses are reported on each owners or shareholders individual tax return, whether or not they receive dividends.
For this reason, an LLC may be more suitable for a sole proprietor as partners may not want to be responsible for one another's expenses or losses.