LLCs provide liability protection for their members. This means personal assets will be protected against debts, losses, and any court rulings against the business.

LLCs are “pass-through entities.” This means that dealing with business taxes is much easier, though it also means paying those taxes on a personal 1040 tax return.

LLCs provide great flexibility. Corporate management structures are far more rigid than those of an S Corporation.

Given that it takes far less red tape to organize and is generally cheaper to administer, the LLC might be your best choice if you’re a new business owner.

Posted in Taxes