August 7, 2017 | Business Products & Services | No Comments
Limited Liability Company 101 for Business Beginners
Limited Liability Company or LLC is an entity legally created by the state for business structuring. LLCs can run your real state investments, boats, vehicles, and aircrafts like a business. Either it is owned by one or more individuals. Make sure to file the correct LLC information documents before making the pay for the filing fee in your state. The main reason for creating an LLC is for asset protection. It is comparison to a wall between your personal assets and business assets. If worse comes to worst, only your assets of LLC are being attacked, if you are sued, but not your personal assets. You have to consider that without LLC, your personal assets are going to be prey for by creditors. This is one of the benefits when forming a LLC, board of directors are not needed compared to corporations. It doesn’t need to hold board meetings or keep a record of it. Another benefit in LLC is no double taxation. All the properties are distributed however the owner wants it. LLC is the best business structure for all business owners and investors alike. The requirements needed for forming an LLC is set by the state you are residing in. There are states in this country that are very good for business as well as for LLC formation. What are the states that we need to look for?
1.Wyoming. Forming an LLC in a favorable state means doing Wyoming because it is considered as the best state to form LLC. Wyoming developed a most favorable environment for doing business, recruiting people, and making the economic ambience set to the right designation. The state developed the giving of tax incentives to those who are always regular with their taxes.
2.Nevada. The best state to from LLC is Nevada because it doesn’t have a state tax. They have created favorable corporation and LLC rules. It allows the LLC to be there and not be penetrated and have the income inside of it insulated from outside attack. Nevada LLC will not be liable for any of your personal obligations.
3.Delaware. Delaware is an alternative in the corner of the best state to form LLC. The rules of LLC in Delaware are tremendously favorable to all business owners, even big investors. Your business assets in this state are firmly protected from different risks and financial attacks. The rest of your assets, personal are not touched. This state will make you rethink of your future business plans and consider Delaware your home.
4.Texas. The last but not the least, Texas, another best state to form LLC. Texas has some of the highest exemptions from execution in the country. This state banked on these strategies to help them resolve supply and demand of businesses as well as proper asset protection.
To add, Kansas is also considered as the best state to form LLC.
The LLC was developed to protect your business assets from your personal obligations, minimize the problems in your business managing, and as well as push you forward to success.