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Limit your Exposure to Personal
Loss by establishing a Limited Liability Partnership
or LLC.
What is an Limited Liability Partnership?
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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
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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.
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