An LLC is an entity separate from its owner; therefore, the owner is not personally responsible for business liabilities. Personal assets, such as a home, car, and savings, cannot be sought out by creditors of the business. By forming an LLC, the business owner increases credibility with customers and business partners yet is subject to fewer requirements than an S Corporation or C Corporation. Owners of an LLC have no board of directors to comply to; meaning, they have the options to implement any organizational structure that they desire. Additionally, LLCs do not pay taxes, but rather taxes are passed through to the business owner and paid on a personal level.
Incorporating an LLC brings with it only a few cons, such as difficulties while transferring ownership, lack of legal precedence, and ongoing fees. 1800Accountant.com assists small business owners around the nation with business incorporation services as well as ongoing accounting and tax preparation. Because bookkeeping is time consuming, the accountants at 1800Accountant.com allow business owners to focus on their core business operations.
A national accounting firm, 1800Accountant’