Reasons you Should be Creating an LLC (Limited Liability Company)
When starting out as a small business owner you will have the opportunity to create an LLC or Limited Liability Company. You may be wondering how an LLC could benefit you. Consulting with the attorneys at Robinson, Seiler & Anderson will help you in deciding which path is right for you and your business. Listed below are just some of the reasons as to why you should be creating an LLC for your small business or business ventures.
To Give your Business Customization
LLCs are great for small businesses because they’re adaptable to all situations. No matter whether you have 100 silent investors or are a two-person small-business operation, the LLC is so flexible that you can pretty much write the operating agreement to suit your needs. Your operating agreement gives you the legality you need when it comes to running your business.
Protection of Assets
If you’re in the business of renting out homes you will have a few properties under your care. An LLC can give you and your real estate assets the protection it needs. If someone tries to sue you they can’t go after your assets that are under or “purchased” by your LLC.
Planning your Estate
This could also fall under the category of protecting your assets. As you sit down and prepare your Estate Plan you can also have this fall under the protection of your LLC. LLCs protect you not only from creditors, but also from probate lawyers and court costs. They allow you to avoid probate altogether, which means that your estate isn’t subject to the nickel-and-diming that probate attorneys siphon from estates as the court divvies up assets.
Minimize Tax Burdens
Building up a business takes time, and in the first year or two, you probably will incur thousands of dollars in losses. A lot of entrepreneurs, eager to soften the financial blow of the startup phase, decide to form an LLC. With an LLC and its default partnership taxation, the losses of the business flow through to the members so that they can use them as deductions for other income.
There are a lot of aspects when it comes to creating an LLC and how it can benefit you and your business. To get more insight on the set up of an LLC make sure you schedule a consultation with one of the experienced attorneys at Robinson, Seiler & Anderson in Provo.