Should I Start an LLC?,
What is the best business structure for me?
The structure you choose will play a major role in how your business is taxed, managed, and owned.
This is a normal question when someone have an idea or project in hands and usually they read a lot about LLC, Corps, Partnerships and more on the web, and really doubt what to do when they are just starting out.
You can even find companies (Registered Agents) and some of them even doing it for Free (almost never the best option unless you can’t pay for a better service) and here we are going to resolve all your doubts in the shortest and best way.
So… Should You Start an LLC?
The Short Answer
YES,
Except for the opening fees that are usually really low and are tax deductible, the main benefits are:
- Reduce the level of risk
- Potential profit (taxes)
- Credibility and consumer trust
Recommended Post: The 5 LLC Tax Filing Options to Maximize Business Efficiency
So, What Is An LLC?
Short Answer
A limited liability company (LLC) is a US business structure that offers the personal liability protection of a corporation with the pass-through taxation of a sole proprietorship or partnership.
Is it for everyone?
An LLC is the right choice for business owners who are looking to:
- Protect their personal assets
- Have tax choices that benefit their bottom line
- Grow their business
- Gain credibility with consumers
How
does it work?
Level Of Risk
Small businesses could face risks such as product liability, personal injury, and/or trademark infringement.
Any business that carries risk needs to be legally separated from its owner.
This separation is known as limited liability protection.
Limited liability protects a business owner’s personal assets (ie., car, house, and savings) in the event that a business is sued or defaults on a debt.
Profit and LLC Taxes
A small business that earns a steady profit can benefit from the flexible tax options that an LLC offers.
LLC owners can choose between pass-through taxation or the S corporation (S corp) tax classification.
LLC vs S Corporation
Being taxed as a default LLC works best for business owners who choose to reinvest profit back into the business and the S corporation (S corp) tax status is best for businesses that want to distribute most of the profit to owners.
LLC vs Corporation
A corporation is only useful for business owners that must rely on outside investors. This is because of the way corporations are taxed.
Any small business that doesn’t need outside investors will do better at tax time by choosing an LLC.
Credibility and Consumer Trust
Small businesses rely on consumer trust and recurring purchases. Credibility plays a key roll in creating and maintaining any business.
Businesses that form LLCs gain a level of consumer trust and credibility simply by forming an LLC.
How Can I Start?
Very Easy
By Yourself
It’s never an easy to go through all the government requirements but here are some FREE guides to help you succeed.
Hiring Someone
There are many agents and they all offer different services but in the end the result is the same, the registration of your company.
Always look at confidentiality, prices, times and extra services that interest you in order to make your decision.
Before Leaving we recommend you to learn a little about
Registered Agents and NorthWest Registered Agent
Why doesn't everyone do it?
MAIN REASON
· They do not know about it
OTHER REASONS
· It's not free. There are small states Fees
· They think it's too complicated
· Conclusion ·
Should you start an LLC?, it all depends on your needs.
You can simply learn how to open your company, how to keep it up to date or how to be your own registered agent and take the opportunity to download the guides, forms and documents that are out there for FREE.
You can also take advantage of different agents offers and once you open it, you will decide what the next step is.
At the end protecting your life’s project should be a priority not a luxury, so yes. Transform that idea into an LLC and begin to grow your future baby.
If you want us to share with you some coupons, please don’t hesitate to contact us.
Remember that it is more convenient to have a company when you want to have your own business regardless of whether it is just a blog or a whole new brand.
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