The 4 Benefits of Forming an LLC
Posted By Salvador Phillips, PLLC || Dec 21, 2015
Forming a limited liability company (LLC) can be beneficial for many reasons. To begin, this type of hybrid legal structure allows you to benefit from the limited liability features of a corporation while experiencing the tax efficiencies and flexible operations of a partnership ran business. Unlike like many other types of businesses, owners of an LLC are referred to as members. The amount of owners or members that can run an LLC depend on which state the LLC is located.
Still, there are many benefits to forming an LLC as opposed to any other form of business, including the following four:
1. You Can Protect Your Assets
With an LLC, members that act as owners are not held liable for business debts or liabilities of the LLC. This means creditors are not permitted to pursue the personal assets such as savings accounts, homes, and more to pay off any business debts that may exist.
2. You May Not Have to Pay Taxes at the Business Level
After creating an LLC, any due tax is paid by the individual rather than the business. This is because any incomes or losses, for the business, are “passed-through” to members. In addition, these incomes and losses are reported on personal income tax returns.
3. You Can Establish Credibility Fairly Quickly
When starting a new business, one of the most difficult things a business owner can face is gaining the trust of consumers. By forming an LLC, consumers may entrust you simply because you have created a formal commitment to your business. Many are surprised to find how much more entrusting clientele can become when “LLC” is added to a business name, title, or description.
4. You Can Establish Your Organization Freely
In most cases, corporations are run by a group of individuals usually referred to as a board of directors. This board usually oversees the decisions made within the different levels of the company. In contrast, an LLC’s structure is much looser in that member or managers can agree upon structures as they please.
Have Any More Questions? Call Our Phoenix Business Lawyers Today
At Salvador Phillips, PLLC, our Phoenix business law attorneys can help you with all legal aspects related to the creation or maintenance of a business. Our team is committed to working hard to help our clients achieve positive outcomes regardless of what their circumstances may be. When you become our client, we will address any questions or concerns you may have to help you and your business become more successful than ever.
Call our team at Salvador Phillips, PLLC without delay. We are available around the clock to help you!