Many Americans dream of owning a business. However, once you attain this goal, you should consider organizing the entity as a Limited Liability Company, or LLC. Doing so impacts many elements, from how you pay taxes to your personal liability. Here, the business law professionals of The Law Offices of Bromm, Lindahl, Freeman-Caddy & Lausterer in Wahoo, NE, explain some advantages of an LLC.
Why Become a Limited Liability Company?
An LLC offers flexibility when it’s time to do taxes. It can file as a single-member via one person’s return, as a traditional partnership, or as a corporation. A business law advisor can draw up an operating agreement outlining how the LLC shall be treated for tax purposes. This is advisable, as the IRS may otherwise automatically classify it as a corporation.
In comparison to many other business structures, an LLC has the added benefit of minimizing paperwork. These bodies have less stringent compliance requirements, making it easier to keep them in good legal standing. Not only is there less documentation but also minimal attorney fees.
As the name implies, LLCs, like corporations, protect their members from liability. If the business goes into debt, for instance, creditors can’t seize the personal assets of its members. This is a meaningful protection that many owners value thanks to the security it offers.
These benefits aside, an LLC isn’t the right option for every organization. The business law experts at The Law Offices of Bromm, Lindahl, Freeman-Caddy & Lausterer will determine whether this structure is best for your venture. Founded in 1893, the firm brings decades of proven experience to its clients. For an overview of their practice areas, you can visit the team online. To schedule an appointment and begin discussing your needs and goals, call (402) 443-3225 today.