File an LLC to find big benefits for a small business
LLCs are one of the most commonly chosen business structures among entrepreneurs who are starting a company. With the help of online incorporation services, it’s simple to file an LLC, but it’s smart to know how to use this structure to its full advantage. Business Insider offers some insight on how to make the most of an LLC.
To start, the entity limits the responsibility of shareholders with respect to corporate practices. The structure protects entrepreneurs’ personal assets by separating the identity of the corporation and shareholders. This means personal savings, cars, homes and more are protected from creditors.
Tax advantages are another benefit of LLCs. Unlike many other business structures, limited liability companies don’t subject businesspeople to double taxation of profits on both the corporate and personal level.
While it may sound shallow, LLCs also look good. The suffix adds credibility to a company, making it more attractive to prospective clients. Perhaps even more importantly, the structure also looks good to investors, which could help bring in needed funds for starting or expanding companies.
Moreover, the source reports that LLCs might not only benefit an individual business, but they could also help the overall economy. In order to get the most benefits out of an LLC, entrepreneurs are encouraged to make new hires.
LLCs might not only benefit business owners, but they could help bring down the 9.7 percent national unemployment rate. With this in mind, entrepreneurs might consider filing an LLC to help the small business community live up to the expectation that it will generate new jobs and lead the way to economic recovery.