{"id":7763,"date":"2022-03-31T15:00:34","date_gmt":"2022-03-31T19:00:34","guid":{"rendered":"https:\/\/www.realtyhop.com\/blog\/?p=7763"},"modified":"2022-03-25T16:14:55","modified_gmt":"2022-03-25T20:14:55","slug":"what-is-an-llc-good-for","status":"publish","type":"post","link":"https:\/\/www.realtyhop.com\/blog\/what-is-an-llc-good-for\/","title":{"rendered":"What is an LLC Good For?"},"content":{"rendered":"
If you ever decide to start a business, one of the first choices you will need to make is\u00a0<\/span>which type\u00a0<\/span><\/em>of business you hope to create. There are many different ways to structure your business, and one of the most common is a\u00a0<\/span>limited liability company\u00a0<\/span><\/em>(LLC).<\/span><\/p>\n Generally speaking, establishing an LLC is one of the easiest ways to protect yourself from future tax obligations and potential exposure to legal consequences (i.e., people suing you). Due to easy creation and accessible benefits, there are currently more than 20 million LLCs in the United States (that’s about one LLC for every 20 people).<\/span><\/p>\n Are you currently a small business owner interested in “making things official”? Well, then establishing an LLC might be your most straightforward path ahead. In this article, we will discuss the most important things you need to know about establishing an LLC, including what they are, the benefits they provide, and the many reasons you might consider establishing one of your own.<\/span><\/p>\n An LLC, which stands for\u00a0<\/span>limited liability\u00a0<\/span><\/em>company, is a specific business structure designed to limit the legal and financial liabilities held by the\u00a0<\/span>business owner(s).\u00a0<\/span><\/em>Generally speaking, an LLC is one of the simplest methods for establishing a business. LLCs can be used by small businesses (with just one person), as well as large businesses. They are used by enterprises that provide goods and services of every kind.<\/span><\/p>\n When establishing an LLC, you will need to select a state (probably your home state) to incorporate in. Once you have completed the necessary paperwork, you will have officially established a business entity that can buy property, make transactions, accrue debts, and engage in other business interactions.<\/span><\/p>\n An LLC does not\u00a0<\/span>directly\u00a0<\/span><\/em>pay taxes. However, once the profits from an LLC are passed on to the owner(s), the owner will usually need to pay income taxes.<\/span><\/p>\n When an LLC is created, it will usually be required to file formal\u00a0<\/span>articles of incorporation<\/span><\/em>. Essentially, these articles are a formal declaration of how the LLC will be structured, who has the right to claim what, and who holds onto certain liabilities. Compared to other business structures, such as a corporation, LLCs are relatively easy and affordable to create.<\/span><\/p>\n Compared to a sole proprietorship, which is often the precursor to an LLC, establishing a limited liability company is an excellent way to protect your personal assets and potentially limit other sources of liability, such as taxes. If you run into debt or legal issues, your business assets might be at risk, but your personal assets (generally) will remain protected. Establishing an LLC also makes it easier to accumulate capital and apply for loans.<\/span><\/p>\n Compared to other, generally more complex business entities, such as a corporation, LLCs require less paperwork and have lower filing costs. Depending on the state you set up the LLC in, the fee you might be required to pay for filing can be as low as $25 (Mississippi) or as high as $500 (Massachusetts).<\/span><\/p>\nWhat is an LLC?<\/h2>\n
What are the Benefits of Creating an LLC?<\/h2>\n