LLC
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.
THE BASICS
Learn the basics of starting a limited liability company
PROS & CONS
What are the pros and cons o limited liability? Learn more
FUNDING
Learn more about small business funding options
LIMITED LIABILITY COMPANY
PROS & CONS
PROS
MORE FLEXIBILITY
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A limited liability company must file articles of its' organization with the state, it has a more flexible structure than a corporation.
LIMITED LIABILITY
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An LLC protects owners and shareholders from personal liability against debts and judgments.
TAX OPTIONS
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Ann LLC can choose if it wants to be taxed as a sole proprietorship, partnership, S corporation or corporation.
FEWER COMPLIANCE OBLIGATIONS
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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
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An LLC is an entity of its' own and can continue to do business after the owners sell or pass away.
LIMITED INVESTOR INPUT
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You can allow limited investor input.
CONS
PASS THROUGH TAXES
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Pass through taxes means that profits and losses are reported on each owners or shareholders individual tax return, whether or not they receive dividends.
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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.
PARTNERSHIPS
Learn more about the basics of starting a partnership
ARE YOU READY?
View checks & balances startup lists to learn if you're ready to start a business
CORPORATION
Thinking big? Learn the basics of starting a corporation