What Is a Limited Liability Contractor?
A limited liability company/contractor, known as an LLC, is a type of company model used by many small or medium sized businesses and offers different benefits for the company itself and its employees.
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LLC
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An LLC is a mixture of both the aspects of a larger corporation as well as those of smaller partnerships. Popular amongst small to medium sized businesses, it allows the company to have limited liability in its endeavors and taxing. The ability to not be fully responsible for the complete taxation of the company is why LLC's are well suited for small businesses that tend to have one owner.
Benefits
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According to experts from The Company Corporation, advantages of having an LLC is that there is limited personal liability for business debts and obligations, owners/members are not required to be U.S. citizens or permanent residents, and there is simplified record keeping for the business.
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Tax Flexibility
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The aspect of tax flexibility of an LLC is one of the more attractive reasons small businesses may jump at the opportunity to become an LLC. Because of what is known as pass-through taxation, owners get to report their share of profits or losses in the company on their individual tax returns. Overall, an LLC is able to be more independent and worry free.
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References
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