Why LLC?: Benefits of LLC Formation
I often get small business clients that ask me what the benefits of LLC formation are. In other words, Why LLC as opposed to other business
forms, such as corporation, sole proprietorship, partnerships and the like?
Those considering starting a small business, if planning correctly, want to make sure that they are giving their business the best chance of success. One of those considerations is what business format will
provide the maximum amount of personal protection to the business owner while also providing the maximum amount of flexibility to
run the business itself.
This is where the LLC, or limited liability company, format comes in.
While many people believe that an LLC is a corporation, this is not technically correct. An LLC is is an unincorporated business
association. In a nutshell, it is a cross between a partnership and a corporation that combines the most favorable attributes of both:
a partnership's flexibility and tax advantages, and a corporation's
protection against personal liability.
***Important Note: This is a general overview of the benefits of LLC formation, and should not be considered legal advice.
Every state has different laws regarding the benefits of llc formation and operation of LLC's. What is true in one
state is not true in another. Consult with an attorney licensed in your state with your business formation questions.
Learn More About LLC's:
One of the major Benefits of LLC Formation: Flexibility
Read about another important LLC advantage: personal liability protection.
Click here to read about the tax benefits of LLC's.
Background Reading: Explanation of LLC: What Does LLC Mean?
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Questions? Need help? Contact Small Business Attorney Nicole Wipp today.
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