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Limit your Exposure to Personal
Loss by establishing LLC Corporations or Limited Liability
Companies.
What are LLC Corporations?
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The term LLC stands for limited liability company.
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 LLC Corporations
is the fact you can separate your personal and
business liability.
LLC Corporations works much the same as a standard
partnership in that all the
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business owners or share holders have an equal say in
the company.
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Having LLC Corporations (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. LLC Corporations 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.
Benefits
of LLC
Corporations
LLC Corporations are 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 Corporation.
Getting incorporated out of state by getting Texas
LLC Corporations, Oklahoma LLC Corporations or Nevada
LLC Corporations may have tax and other distinct
advantages. Here are some links where you can get
a further explanation of llc’s and some more
information on why one might consider incorporating
out of state: Texas LLC, Oklahoma LLC and Nevada
LLC.
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