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Will Forming A Limited Liability Company Do Me Good As A Small Business Owner?

When you go on to legally form your own business, you will in many cases be faced with a few options: registering an llc, a corporation, a partnership or just be self employed. The option of forming an llc is the one discussed in this article, as it is probably the best one in many situations.

LLC stands for Limited Liability Company. That means that the company is a separate legal entity from the person who founded it. The meaning is that the person cannot be personally responsible for the losses the company accumulates (except for his personal investment in the company). It also means that the company itself can be sued legally for matters that concern it's activity, and again, the person who owns and/or controls the company is not responsible (with a few exceptions).

LLC's also enjoy several tax benefits. The person who controls the LLC is required to pay tax only once on the LLC's profits. He is than exempt from paying any personal tax on the profits he gains from his LLC company.

Other advantages LLC's have are that there is less paperwork and hassle to operate an LLC in compared with an incorporation. There is no need for board and annual meetings, less files and reports to submit to the authorities and regulatory bodies. All this leads to the LLC being a very attractive alternative for small and medium sized business, as a form of incorporation that has many benefits and few disadvantages.

Forming a limited liability company is a fast and easy process. All you need to do is decide on a company name and location. You need to pay a fee and submit the papers to the Secretary of State in the state where the LLC is to be registered. All US states permit registering an LLC, so you'll have no problem completing the process in your own state. Each LLC should have a Registered Agent with a street address in the state where the LLC was registered. The Secretary of State office will provide assistance to anyone who wants to register an LLC, and the process will be done in a few days.

The choice of business structure and the incorporation of it are important. LLC is a great fit for many businesses, but not all of them. So, you'll probably be best to consult with a lawyer before deciding on an incorporation that is best suited to your needs.

About the Author: Visit from Jane Ling, and learn about forming llc, llc starting and more information about business forming

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