One of the most important decisions you have to make as an entrepreneur is what type of business structure you will form. It will determine how you are taxed, what legal obligations you are responsible for, and how much money you can gain or lose.
The LLC has become one of the most attractive ways to operate a business. Although many first-time entrepreneurs choose to operate as a sole proprietor by default, the LLC has the magical capabilities of shielding personal assets from loss. It gives you the extra protection you may need to sleep at night and know that your home, car, and other personal assets of value won’t be taken away if someone sues the business.
Before making a decision that could impact the longevity of your business, talk to your Certified Public Accountant (CPA). Your CPA can help you determine the best legal entity structure for you based on your business goals. There is no one-size business structure that will work for everyone so learning the pros and cons of each option may save you tons of time and money down the line.
Ready to get started? Here are some advantages of an LLC you should consider:
1. Limited Personal Liability
LLC stands for Limited Liability Company. It’s somewhat of a hybrid business structure that gives you the tax benefits of