By: Myracle Stevenson
Introduction:
LLC refers to a limited liability company. It is different from a corporation. Corporations are here for very long now with LLC very new to the structure. Corporations arevery common among businessmen who have a high market value. LLC are a popular option for the small business owners. It gives their business the legal entity they are after for. At the same time, it doesn’t let them fall under the corporation category.
So, Does LLC Make You Official?
The answer is yes. When you form an LLC, your business gets titled as it on any official paperwork you do. Limited liability company gives your business its own legal entity. That means that now the business is not associated with you. Basically, it removes the sole proprietorship tag from you if you are the only owner. Your business sounds more authentic as it shows that your company is registered and is authentic.
Giving Business The Liability Protection:
As you form an LLC it gets official. Now it is something different from general or sole proprietorship. Your business and you will be dealt separately. The advantage it gives is that your personal assets aren’t at stake. This shows that your business is now an official body. The creditors can only claim the assets belonging to the company and not your personal assets. It has to pass through certain rules and regulations that are dedicated to those who have an LLC.
They Get Their Own Structure:
As mentioned earlier, LLCs are governed by different bodies. When you form an LLC then you get official points for doing your business. These points include how the profit loss statement would be defined, what happens if you have to wrap up the business. If you want to wrap up the business you don’t need to do a lot when you are a sole proprietor. Although if you have formed an LLC you need to under go some conditions that were mentioned in the agreement you signed. You get guidelines, mechanism of doing and handling your business as you get when you have a trademark.
Subject To Taxation:
Like every corporation or an official business, the LLC is subject to taxation. The mode of corporation can serve if you need to be double taxed or single taxed. Taxation makes you an official body. Since you are now listed at an official paper because you file tax returns.
No Limitation Of Owners:
The LLC can have whatever type of owners they want. They can have a manager that is present in many of the corporations. It is not restricted to only one owner. There can be both foreign and domestic entities attached to it. It gives the authenticity of you and your business.
Conclusion:
The above points relate that having an LLC makes you official. Your business goes under some rules and is regulated by a body. The body assigns your business with other LLCs and are governed under those unified terms and conditions.