The Advantages of a Limited Liability Corporation

A limited liability company, or LLC, means just that The participants' liability is limited to the assets that they have pledged to the LLC.

Advantages

The main advantage to participants of an LLC is that in case of insolvency, the participants are not personally liable. This also holds true in case of a lawsuit--the LLC is liable, but not the individual.

Why An LLC

An LLC is very similar in formation to a corporation. However, the paperwork to maintaining an LLC is much less involved than that of a corporation.

LLC vs. Partnership

In comparison to a partnership, an LLC again comes out the winner. You get the tax advantages of a partnership, but your liability is limited as in a corporation.

Ownership

The LLC is not limited in the number of people who can take part in the ownership. Also, all owners can be active in the day-to-day operation.

Taxation

The main positive point of an LLC is that profit gained by the business is taxed just one time. The LLC provides that business owners are not liable to pay both personal and business taxes.

References

• Limited Liability Corporation