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Slinde Nelson

Will an LLC work for you?

On Behalf of | Jan 5, 2023 | Business Formation

First-time business owners or veterans in the field alike always have to start off with the same question when launching a business. What will they classify their business as?

An LLC – or a limited liability company – serves as a well-known structure that many business owners may find beneficial.

Protect your personal assets

Nerdwallet discusses the benefits associated with an LLC. First and foremost, as the name suggests, a major benefit is the limited liability that an LLC provides.

In short, when a business owner files their business as an LLC, they do not have to worry about their personal assets getting impacted by any potential bankruptcy or financial difficulties with the business. Their personal assets stay separate, and a debt collector cannot claim them on behalf of the company.

However, in order to maintain this, a business owner must take care not to mix their personal assets and business assets. If they mix these assets, they lose the protections of an LLC.

Enjoy flexible membership

Next, it offers a lot of flexibility for membership. Members manage the business as well, and can share in all decision-making that goes on within the business.

Have an easy start

Additionally, this is one of the easiest structures to start a business with. The fees and paperwork for an LLC usually remain light in the initial stages, and most people can file the paperwork on their own. However, taxes and other fees may differ vastly from state to state, making it important for prospective business owners to research their individual state and see how state laws treat an LLC.