Why is an LLC the Right Structure for Your Business Start Up


Starting a business comes with many challenges these days, despite massive technological advancements made every year. True, the chances of your brand gaining huge exposure are exponentially bigger now, but with that comes obstacles and problems that may not have been present in the past. One of those is deciding on the best business model for your startup. Now, there are plenty out there, but for an up and coming business, a limited liability corporation (LLC) may just be the best option out there. It helps you avoid several roadblocks along the road, and it will pave the way to you becoming a bigger business in the future. Here’s why you should consider an LLC business model.

No double taxation

One of the most crucial angels to LLCs is the fact that they allow you to avoid double taxation, which is when both the company and the owners are taxed separately. This is why LLCs are the perfect solution for entrepreneurs who want to start companies, but don’t want to be taxed as both the owners and the entity. It gets better; your company can also support multiple classes of stock if you need, which is important if you want to convert your business model to a corporation in the future.

You protect your assets

Another crucial angle to limited responsibility corporations is the fact that they help you protect your assets, and that is very important if you want to avoid getting sued for any legal liability the company falls into. This is why you need to know what LLC means, as it might just be the way you get to protect your money. That is because, with LLCs, you separate your finances and assets from those of the company, which means a lawsuit directed at the company cannot touch your money.

Easy registration

One of the most annoying problems with any business structure is the bureaucracy you have to go through in order to register your company, but that is not the case with LLCs. To register a limited responsibility corporation, the process is fairly simple and it doesn’t necessarily require a legal team and all that. It’s fast and easy, and anybody could do it.

No restrictions on how you manage the company

Most corporations are legally required by their bylaws to conduct at least one annual meeting of the shareholders, not to mention record meeting minutes for every board meeting, and a lot of other technicalities. With LLCs, you’re not forced to do any of that. You can do it if you want to, but it’s your choice eventually.

At the end of the day, limited liability corporations are perfect for a startup, and they provide a lot of features that any rising business could stand to benefit from. But on the other hand, most LLCs do convert to C-Corp or other structures down the line because LLCs are limited when it comes to acquisitions and mergers. But when you’re just starting out, you should definitely go with that option as it’s your best choice.

Arthur Brown is a dad of 3 kids and is a keen writer covering a range of topics such as Internet marketing, SEO, and more! When not writing, he’s found behind a drum kit.

Why is an LLC the Right Structure for Your Business Start Up

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