Advantages of Forming An LLC

LLC Benefits

Limited Liability - After forming an LLC, owners enjoy the same liability protection as with a corporation. Because an LLC exists as a separate entity, much like a corporation, members cannot be held personally liable for company debts unless they have signed a personal guarantee.

Tax Treatment – LLCs have a flexible tax structure, meaning you can choose to be taxed as a partnership or as a corporation.

Flexible Distributions – LLCs offer tremendous flexibility and are used for a variety of reasons including, but not limited to, rental properties, real estate and investing.

In an LLC you can allocate the way you want the profits to be distributed and it does not have to be based upon the percentage of ownership. Distributions of the LLC can be based on the total amount of membership interest each party has, on the amount of work members put into the company, or a number of other distribution formulas.

Example: There are two members in an LLC. One member is an investor who only wants to protect their investment by controlling 50% of the company, yet he will only receive 35% of the profit. The other member is doing all the work and gets 65% of the profits, even though he only owns 50% of the business.

Talk to us today about how to form an LLC and start taking advantage of an LLC and its benefits.

All that we do is submitted and performed with the understanding that we are not engaged in rendering legal, accounting or other such professional service.  If legal advice or other expert assistance is required, the services of a professional should be sought.