When you start a business, you will need to choose the type of business, or business entity, that you will be pursuing. Many new business owners choose to register their companies as series llc because of a variety of benefits that are enjoyed by this company structure. Here is more about the nature and benefits of an LLC:
What is an LLC?: There are four major business entities in the United States including Sole Proprietorships, Corporations, Partnerships and Limited Liability Companies, or LLC’s. Because LLC’s enjoy a variety of benefits, they have become a popular business entity with entrepreneurs.
Benefits of an LLC: Like corporations, LLC’s are protected from personal liability. For instance, if your company losses a lawsuit, the plaintiff cannot pursue your personal assets for compensation. Unlike corporations, however, LLC’s enjoy a much more flexible internal government structure, which can essentially be tailored to best fit your business model. Another advantage of having an LLC is the lack of double taxation. While corporations are taxed twice, once on corporate and once on individual profits, LLC shareholders are only taxed as individuals.
How to Start an LLC: In order to start an LLC, you will need to register your company with your state and federal governments. On the state level, you will need to file individually for every state where your company will be doing business. On a federal level, you will need to submit Articles of Organization and an LLC Operating agreement as well as obtain a new Tax ID number for your LLC. Fortunately, thanks to modern technology, you can accomplish most of your paperwork online quickly and efficiently. For instance, when you apply online for a Tax ID number, you can receive the new number in about one day.
There are many benefits to starting an LLC. If you have decided that an LLC is the best entity for your business, collaborating with a reliable website to submit all of your documents can help you save time.
Although limited liability provides some protection for businesses, in some cases, owners may end up paying more taxes than corporation owners. For this reason, business owners must also be aware of the downfalls of limited liability.
