Limit your Exposure to Personal Loss by establishing a Limited Liability Partnership or LLC.

What is an Limited Liability Partnership?

The term LLC stands for limited liability corporation. It is a popular form of business setup that is particularly popular for home based businesses and the self employed as it is a mix between a corporation and a partnership having some of the benefits of both. First introduced in 1977 the main advantage of an Limited Liability Partnership is the fact you can separate your personal and business liability.

An Limited Liability Partnership works much the same as a standard partnership in that all the business owners or share holders have an equal say in the company. Not Having an Limited Liability Partnership (limited liability company) can Cost You:

Working under your own name or a dba (doing business as) has distinct disadvantages. First of all, you are paying for all your goods and services with after tax dollars. An Limited Liability Partnership on the other hand can write off all purchases of goods and services as a business expense before taxes. Secondly as an individual you are taxed multiple times more than a corporation would for the same income. And third you are totally exposed in terms of liability – everything you own in essence is totally in full view - free for the taking on the slightest excuse. A successful lawsuit against you can lay claim to all your personal property, all that you or your family business have built up through a lifetime(s) of hard work.

Limited Liability Partnership Benefits
An Limited Liability Partnership is one of the first steps one can take to achieve peace of mind knowning that all your personal property is not exposed through any litigation taken against your business. Use it to write off all your business expenses to reduce your taxable income and enjoy a much lower tax rate then you would by doing business in your own name. You can incorporate in your own state or go out of state to establish a Limited Liability Partnership. Getting incorporated out of state by getting a Texas Limited Liability Partnership, an Oklahoma Limited Liability Partnership or a Nevada Limited Liability Partnership may have tax and other distinct advantages. Here are some links where you can get a further explanation of Limited Liability Partnership’s and some more information on why one might consider incorporating out of state: Texas Limited Liability Corporation, Oklahoma Limited Liability Corporation and Nevada Limited Liability Corporation.