5 Advantages of an LLC

Limited Liability Companies (LLC) help limit liability for managers and members in the course of ordinary business activities.

1. LLC’s help limit liability for managers and members in the course of ordinary business activities.
2. They are simple to form and maintain. Most States allow owners to file online. Articles of Organization and an Operating Agreement are typically what will be required to start.
3. As a flow-through entity, profits are distributed to its member and taxed at their personal tax levels. Unlike a C-Corporation, it avoids double taxation.
4. This is a great type of entity to hold appreciating assets, such as real estate, and can be owned by a single member or multiple members forming a partnership.
5. It can elect to be taxed as an S-Corporation, whether single member or multi-member. This provides a unique benefit for self-employment tax savings.