Whether you are looking to start your own business and are unsure where to begin or you are a freelancer wondering whether or not you should open a company, having a limited liability company (LLC) may be the right option for you. Here are three reasons why you need an LLC for a successful business and bright future.
1. Asset protection
When you have an LLC, you personally are protected from any business-related lawsuits and debts. This means that, while your business may be in trouble from creditors or nasty lawsuits, your personal assets like your bank account, car, and home can’t be collected as payment. Instead, your LLC’s assets will be drawn from. Personal asset protection means that you will personally be safe in the event of something going wrong with your LLC, and you won’t “lose it all” if a lawsuit or creditor starts hounding you.
2. Pass-through taxation
When tax season inevitably comes along, your LLC’s reported profits or losses will go through the company owner’s personal tax return. This means that profits are taxed at the owner’s personal tax rates, allowing for further business success through better tax returns. Pass-through taxation also lets owners qualify for special deductions, meaning you can take that extra money and put it right back into the business, using it to push for further success!
3. Simple and flexible
The good thing about LLCs is the fact that they are straightforward and flexible. They don’t require officers, directors, board meetings, and other administrative responsibilities that may weigh you down. They let you be a lot more flexible with ownership, management, and taxation. An LLC can have one member or hundreds. LLCs can choose how to be taxed, whether they want pass-through taxation as mentioned above, or filing to become a corporation and be taxed in that way, instead.
If you want to further your business success, protect your assets, or get the advantages of pass-through taxation, an LLC might just be the perfect fit. Unsure where to start? Talk to one of our lawyers at Epstein Law by booking an appointment online today at https://www.epsteinlawllc.com/contact!