In the business world, there are tons of options available for your businesses. In order to have an effective brand and a flourishing company, it is best to know what type of corporate or business structure you want.
An LLC or a limited liability company is one of the many kinds of business corporation structures. For starters, the LLC is a business structure wherein the members of your company or business are not personally or directly held accountable for any of your company’s debts or liabilities. This is also considered a company’s legal status that integrates the limited liability features of a corporation or corporations with flexibility and tax advantages you rarely see in a partnership.
LLC members can be single individuals, multiple individuals, corporations, and even existing LLC businesses. If you wish to join your starting company or your existing business to LLC, here are some pros and cons of choosing to be an LLC member:
Benefits of LLC
- Tax Advantages
Both the profits and the losses in LLCs is handed from the business to the LLC members. In other words, each member in the partnership has to pay the tax on their share of profits on their personal tax returns. Also, unlike corporations they are taxed entities.
- Greater Flexibility
In LLCs, members have freedom to split up the profits in any way that they like. The splitting up can be based on work contributions or the capital of the business.
- Less Paperwork and Fee
As a member of an LLC, you will have less paperwork compared to corporations. In addition, registrations for LLC are low-cost.
Cons of LLC
- Bigger Personal Taxes
If profits in your business remain high with your member remaining few, you may have to pay higher personal taxes.
- Initial Fees
Despite being cheaper to start than corporations, LLCs may have some fees that cost more initially compared to sole proprietorships and/or partnership.
According to state laws, once a single member or any of its members withdraw from the agreement, LLCs shall be dissolved. Because of this, frequent dissolutions of LLCs often happen.
Filing for LLC Online
Filing for an LLC might depend on which state you currently are or where you want to file it. If you are to busy to do it yourself, you can trust on online providers likeincfile.com to make the process easier and as hassle-free as possible.
Online filing for an LLC online starts low. That’s why you don’t need to worry that much. It is also as easy as 1, 2, 3! All you have to do is follow these three steps and your LLC is yours:
- Select the entity type of your business and your preferred state.
- Choose the package that best suits your business.
- Complete the needed online order and provide details of your business.
Upon receiving your order, the online service provider will make sure to review the accuracy of your order details; search name availability in your preferred state; prepare your file documents; and deliver your documents.