Advantages of LLC Incorporation: When you decide you incorporate your business, you can get overwhelmed with the options you have at hand. Meaning, the type of company you want your business to be registered as. There are many options, but mainly they are LLC, C Corp, S Corp, Non-Profit or running your business as a DBA.
Advantages of LLC over Other Types of Incorporations
LLC Stands for a Limited Liability Company. And we will focus this post on LLC only. Discussing about other firms, will deviate us from the topic, so we will save them for a later post. So, why should you choose LLC as an option to get your business registered with the government? Let us look at some reasons to do so.
1. Limited Liability:
The best feature of an LLC is that the owner of the LLC, has limited liability towards the company. Meaning that, in near future, if there happens to be a court case, or some legal hearing. Your personal assets are protected, if the company faces any bankruptcy.
So, it is often advised to new and small businesses that they begin by getting their business registered as an LLC.
The real reason to get your business registered is to avoid paying your taxes multiple times. As a business owner, you might be taxable as well from the income you draw from the business. And business is itself taxable at its own end.
Now their can be many ways by which you can avoid paying tax two times on the same money you made from your business. And with LLC, you can choose the way with which you pay taxes. Whether you pay personally, or at its businesss end. This freedom is often limited to LLC, and other types have some strict rules to carry out the taxes. This feature alone can save you a lot of money, if look down the road.
3. Freedom to Operate:
Other business incorporation types have set of rules which have to be followed. Like corporations need to have a board, and conduct meetings regularly. With an LLC you dont have to carry out any formalities, which might slow down the pace at which you do business.
You can choose to decide how you operate your company. And design the process with which things and decisions are carried out. Like in other corporations, it is necessary that all board members vote on a decision, then only it can be adopted. This saves a lot of time for an LLC, and also makes the process a lot easier.
4. Easy to get Registered:
Lastly, registering an LLC is simplest of all. The paperwork required is minimal. And there is minimum requirement of owners, like in big corporation filings. LLC hence becomes the type, which you can registered in the easiest and the fastest way without wasting any excess money or time. There are many services which can get this done for you instantly. And you wont have to move a finger. Swyft Filings is one such leading agency, which can do filings for you. You can grab a onetime Swyft Filings Coupon and save yourself some money.
So, these were some of the quick and no brainer reasons to go with an LLC as your business type. While you incorporate your business. Now I am sure there are many small nitty gritty details, which we might have missed out on. You are welcome to let us know about those in the comment section down below.