Why an LLC?
All profits and losses are reported with the personal income taxes of each member (owner), also known as pass-through taxation.
This avoids being taxed both at the business and the personal level.
No personal responsibility for business debt & liabilities.
No restrictions on the number of members allowed.
The management structure is flexible.
Less annual paperwork and fewer administrative formalities compared to C corps and S corps.
What are some potential disadvantages?
Cannot sell stock in your company.
It’s generally not attractive to venture capitalists, even if you are going to require additional funding
Transfer of ownership may be difficult.
Owners may be held personally liable for the company’s debts if LLC is found to be operating in violation of its corporate formality requirements.
Do I register the LLC and if so, how and where?
You don’t have to file your LLC with the federal government, instead it filed at the state level, and Empoura handles that part for you
All states require potential LLC owners to file a substantial set of documents, typically called the Articles of Organization, in order to establish their business.
Empoura will take care of this process for you, saving you time, effort, and allowing you to focus on developing your business – not filing paperwork.
`It typically only takes between 7 - 10 days to form an LLC (register and filing you with the state) though the length of the formation process depends on the state in which you’re starting a business.
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