When an entrepreneur starts a business, he or she will have to make many decisions regarding the best way forward for his or her company. One of the choices that a person will have to make is how to structure the business by deciding on a specific business entity. This is one of the critical choices for the business formation process. One of the most popular options for Oregon entrepreneurs is a limited liability company.
There are potential advantages for a business by choosing an LLC, and it remains the most common choice for new business. One of the main points of consideration for this option are the tax implications, but an LLC structure can also provide certain protections that other options may not. For example, an LLC may provide an owner with more protection of his or her personal assets against debt collection efforts.
Like the name suggests, an LLC offers an owner limited liability. This means that if his or her company goes into debt or there are outstanding liabilities, a creditor cannot come after person assets to pay for the debt. It offers the same protection in the event that the company is sued.
Before making a final decision regarding the choice of a business entity, a person would be wise to consider all of his or her choices. This may involve speaking with an experienced attorney who can provide experienced business formation guidance regarding the optimal choice. An assessment of the individual case can reveal whether an LLC is the right choice for an Oregon company.