Owning your own business is tough work but the rewards can be great; after all, small business ownership has made more people wealthy than any other single factor including stocks, bonds or even real estate.
Forming a Limited Liability Company (LLC) helps shield your personal assets from your business assets and risk and, depending upon your specific situation, may provide numerous tax advantages.
LLCs are hybrid business structures, designed to give you the limited liability of a Corporation and the tax efficiency and operating flexibility of a partnership. You establish the duration of your Limited Liability Company up front, but you can always extend it at a later date.
You might also wish to set up your business as an LLC if you only meet two of the four characteristics of a regular C-Corp, which are:
- You want to maintain your partnership’s tax efficiency and operating flexibility - You want the limited liability of a Corporation - You only meet two of the four characteristics of a Corporation
