What is an LLC?

 
 
What is an LLC?
 
 
 

An LLC is a type of company that is formed when you complete the required state paperwork. Here's what you need to know about forming an LLC:

 

The Pros

You can have any number of owners

You will receive limited liability. This means only your company assets are on the line. You won't have to use personal assets to pay business debts.

Your taxes are flexible. You can elect to be taxed as a sole proprietor/partnership, a c corporation, or an s corporation. Whatever works best for you financially.

There are easy operating requirements. You'll have to register with your state initially and then fill out annual paperwork and fees.

It's better for dream deals. They like to see that you're a real company.

 

The Cons

It's harder to issue stock options to owners and employees.

It's not a great option if you're looking for investors, except in specific industries.

 

Your other entity options

Sole Proprietorship

Partnerships

C Corporations

S Corporations

 
 

 

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