Why is llc right for me

In all honesty, there is a lot for an LLC member or members to figure out alone, without any official legal rules or outside intervention. On that note, a limited liability company has no strict management structure to which it must adhere. It is not required to have a board of directors or even officers. It is freedom but also perhaps a little confusion. No two businesses are the same and no single piece of online content can dictate what an individual or individuals should do.

If you might be considering structuring an LLC, understand the advantages and disadvantages broadly and apply them to your own business. An LLC is generally an excellent choice for small business owners, as it provides limited liability protection without too many additional complexities. Just be sure that you are permitted to form an LLC under state law. It is also important, anywhere, to keep business assets separate from personal finances.

This might seem like a no-brainer, but there are many seemingly harmless mishaps when it comes to banking for an LLC, since it is a more unique hybrid. If you think an LLC might be a good fit for your business, get started today with our simple online application to get your EIN and Tax ID for your limited liability company!

Our specialists will file all the required paperwork with the IRS on your behalf quickly and accurately. Take care of your company and we will take care of the rest. Then, receive an email with your ID. It is that easy! Interested in forming an LLC? Contact us today for more assistance in setting up your business entity or get started HERE.

Is an LLC right for me? March 18, By Erin Schnittker. First off, congratulations on your business venture! Already decided on if an LLC is right for you? Get started now.

Flexibility: Perhaps most widely recognized is the flexibility an LLC structure grants business owners.

In most cases, an LLC can use corporate tax rules to avoid being treated as a partnership, the default tax status. But with more than one option of business entities to choose from, this is sometimes one of the most difficult steps.

Should you choose a LLC or a corporation? Which one is better suited for you and your associates, if you have any. Or maybe it is another business entity, entirely different that is better for your plans. To start with, both LLCs and corporations are business entities that can be formed by following a similar procedure including filing a list of documents with the state. Choosing either LLC or corporation as a business entity you benefit as owner by the same type of liability protection — you are not generally personal responsible for business obligations.

The differences include more flexibility in management and taxation and less requirements regarding recordkeeping. Corporations are a better option if you are planning to seek outside investors because the shares are easier to transfer. This form of business entity offers perpetual life and a predictable structure.

As an owner of a corporation you will be considered a shareholder and you will own a number of share issued by the corporation according to the percentage of your ownership in the corporation. If you are a shareholder in a corporation that has issued 15, shares and you own one third of the corporation, this means you will own 5, shares.

A much appreciated advantage of the corporation as a business entity is that shares are relatively easy to transfer. Depending on the state you are in, your LLC might need to be dissolved if a member decides to leave, dies or files bankruptcy. For a small business with carefully chosen business partners, an LLC can be the right business entity to go with. Talk to your accountant about how to set this up and how to comply with the relevant IRS rules and expectations.

If you handle it correctly, you can get the best of both worlds — LLC flexible ownership with certain S Corporation tax advantages. However, depending on your tax bracket, LLC income might get taxed at a higher marginal rate than it would have if that income were earned by a C Corporation. In other words, there might be situations where an LLC owner is paying a higher marginal tax rate on their individual income tax than a C Corporation would owe in corporate taxes.

Consult with a professional tax adviser if you have any questions about the tax implications of your choice of business structure. Ben Gran is a freelance writer from Des Moines, Iowa. Ben has written for Fortune companies, the Governor of Iowa who now serves as U.

Secretary of Agriculture , the U. Secretary of the Navy, and many corporate clients. He writes about entrepreneurship, technology, food and other areas of great personal interest. Where Business Begins. Your Resource to Grow. Here are a few of the most common and some underrated benefits of an LLC.