Starting a Business: What is a Limited Liability Company or LLC?
Plenty of effort goes into starting a business. Those that are looking to pursue this goal should be aware that it can be a long and difficult process. So many details must be ironed out to ensure the success of a venture. Aspiring business owners need to have a complete and well-delineated plan in order to decide what sort of business structure will suit the vision that they have. Every business is unique and it’s crucial that the structure plan you settle on suits the unique characteristics of the brand you want to introduce to the public.
An option you can take is structuring your business as a Limited Liability Company, also called ‘LLC’. The U.S. Small Business Association defines an LLC as a legal structure you can use for your company in order to combine key characteristics of partnerships and corporations. In other words, business owners that opt for an LLC will be referred to as members and will be given limited liability protection. This means that their personal assets will be protected from lawsuits and debts that could—if ever— involve your company. This also means that your business can have the opportunity to benefit from flexibility in operations as well as tax efficiencies, thanks to the fact that membership is shared. Lastly, a limited liability company will not be regarded as a separate tax entity. Despite these advantages, however, starting an LLC also marks your business with a limited lifespan, since it relies on members to continue operations.
Choosing the right structure for your new business is a balancing act. While the LLC structure can have several advantages that could contribute to a successful venture, it might also be susceptible to a few bumps on the road. Starting a new business and structuring your own company is a daunting task. This is a decision that shouldn’t be made lightly. In order to find out what type of business structure is right for you, don’t hesitate to contact a legal expert on corporate formation working in your area. Those in Arizona may contact a Tuscon corporate attorney from Russo, Russo & Slania, P.C. for more detailed advice.