The Limited Liability Company or LLC offers its members some great benefits. Among them you could find the limitation on personal liability, the prevention the double taxation, business credibility, ease of management and finally, they are easy to startup.
1. If you do business as a natural person you put at risk all your personal assets, moreover, your family’s tranquility. So, by forming an LLC your personal assets will be separated from your business assets so that the liability of your business will rely only on those assets that you specifically designated for your business.
2. The doble taxation may occur when your company pays income taxes at corporate level and so you do it as well at individual level for the profits coming from same business. As the LLCs are subject to “pass-through taxation” by default, profits and losses pass through to each member’s individual tax return, and you pay at the tax rate that corresponds to you as individual.
3. Credibility is a must when doing business. Your potential customers may find it more attractive to deal with a company than a person, as well as other businesses. They may consider that doing business with an LLC is more credible. It signifies that you are taking your business seriously.
4. Somebody may say that managing a business is never an easy task. Perhaps she is right. Though, when we are talking about the LLCs management, we could find that the possibility of being managed by its members or by a professional management provides a great flexibility and avoids the necessity of having an expensive corporate structure, such the board of directors or a group of experienced officers. LLCs are usually the best business structure for small businesses and self-employed.
5. And finally, you do not need a set of complex investors to set up your LLC. Whether you are a US resident, or a foreign national you basically just need yourself to form your own LLC. A simple structure may also mean that you could save money not to spending on keeping records and filing complex compliance-related documents.
If you are considering forming an LLC, in Aztec project we provide affordable formation services that will provide you peace of mind and a solid structure for your business.