Perhaps you are an aspiring entrepreneur looking to take a leap and make your company official. Or maybe you have spent time working as a partner for another business and you want to provide services or products of your own. Whatever the reason, forming your business as a Limited Liability Company (LLC) may be the right avenue for you. While an LLC is not for everyone, the entity comes with its benefits that help many small business owners thrive.
1. Money
Because an LLC is a pass-through entity, your company’s losses and profits will be yours. Furthermore, there are often fewer administrative needs for an LLC, which may save you a lot of money when it comes to the technical and paperwork-related needs of your business.
2. Time
Once you have consulted an attorney and related experts in your chosen field, forming your LLC entity should not take very long. And navigating the necessary filing and fees should be fairly simple. Additionally, if you do not have a partner, doing your taxes should be quite easy at the end of the year.
3. Liability
If your company receives a complaint or someone seeks damages for a breach or injury, your personal assets and properties are safe from litigation. This is also the case in the event that you file for bankruptcy. Though, note that your personal assets may not be protected if you are found guilty of a crime or a court finds you grossly negligent.
