Tag Archives: business formation

Why the Limited Liability Company Might Be the Best Choice for You

I won’t go into much detail on business structure as I could for the moment, because if I did, we’d be here for hours. Business law is laden with so much nuance and intricacy that it would take a fine-tooth comb to get through all the hairs and pull out all the dandruff one by one. It’s a painstaking process, one you could at least minimize the heartache and turmoil by hiring an attorney to consult you on whether or not a partnership, or a corporation — or especially in this case, an LLC — would be the best fit for you and your company.

Wait a Second — What’s an LLC?llc business formation jack bauer

limited liability company? That hopefully didn’t fly way past your head (because at one point, it did for me) like an unlucky bullet over Jack Bauer’s skull. A lot of business owners and entrepreneurs go for a limited liability company for obvious reasons, but this is probably the most important one (and most likely the only reason you need to know): there’s flexibility in this structure of the LLC.

Like a corporation, though, you file certain articles of organization and structure as well as a certificate of formation with a limited liability company. However, the flexibility comes around when you can incorporate more of a balance between ‘owner’ and ’employee’. You’re basically all members of the company, for lack of a better term, and all members have the option to decide how they want to be taxed within the entity — either as a ‘partnership’ or ‘corporation’. There’s where you get the flexibility and additional benefits with a limited liability company.

In a way, you’re looking at a hybrid of a corporation and partnership: that’s what a limited liability company really is. And it just might be a good fit for you.

So Should You File for One?

It’s a possibility, for sure. It all depends on what your goals are. There are trade-offs involved. If you’re a small business, but have a decent size workforce, chances are an LLC might be the way to go. You won’t pay as many taxes — but you get a lot of the corporate benefits from the government you otherwise wouldn’t get from a business partnership or sole proprietorship.

It’s all up to you on the path you want to take. As always, though, consultation’s your best weapon in the effort to formulate a business, hence why you could easily contact an organization like Cloud Based Bookkeeping and get it all squared away. That way, you can do away with that fine-tooth comb!