As a business owner, one of the earliest things you must decide on is what form of business structure you want to have. There are numerous options on the table, each with its own benefits and potential drawbacks.
Of these options, Limited Liability Companies (LLCs) often rank as one of the most popular. What are the benefits that they can offer you?
Nerd Wallet discusses the benefits of an LLC in detail. Of course, the first thing that often comes up is right in the name of the company: limited liability.
What this means in practice is that your personal finances and your business finances are not tied. In short, if your business goes bankrupt, it will not affect your personal assets such as your home, car, and any non-business bank accounts. This is a sturdy layer of protection that any business owner would love to have.
Easy start-up process
It is a relatively easy business type to start up, too. The fees and initial paperwork are often considered light in the business world. Owners can often handle these steps without having special knowledge, though of course, it is always a good idea to consult with legal help.
Flexibility is another major plus point for many people. Not only is there enormous flexibility in management, but there is also a lot of flexibility in overall structure. It is not like a corporation, which often requires a lot of meetings, paperwork and formalities.
If any of these options sound particularly beneficial, then an LLC might be a good place for you to start your research.