Starting a new business can both be scary and exciting at the same time. However, in this challenging economy, it is important to choose the type of company structure that would best benefit you and, if applicable, your partners. For the best guidance and advice, it is usually smart for first-timers to consult business lawyers in order to weigh their possible options.
There are many types of ways that a business can be establish; among them is the Limited Liability Company, or LLC. This type of business combines both the benefits of pass-through taxation that a partnership or sole ownership has and the limited liability applicable to corporations. The legal existence of an LLC is separate from the management and its shareholders, so there are no risks of personal liability.
There are many benefits that a new company can benefit through LLC. Among them:
- Once an LLC company is formed, it can stay as a company for as long as necessary. Changes in management, retirement, or even death do not affect the company, allowing it to smoothly continue operations. They can only be terminated through liquidation or other court orders.
- They support better pension schemes as compared to self-employed businesses.
- The most important advantage of LLC is its limited liability. This means that in cases of debts, the shareholders’ personal properties or assets will not be put at risk.
- It is easier to get loans from banks, since they have option to either use certain assets in the company or use the company’s assets as a whole.
These are just some advantages which people who are starting a new business can get if they choose the Limited Liability Company structure for their business. Trained legal professionals can more fully explain the various benefits and potential drawbacks of this business structure. A planned structure for your business may be one of the most crucial parts of setting up success for the future.