In one of our past blogs, we discussed the different types of business entities and shared a little bit of information about each of them. We now want to take the next few blogs and dive a little deeper into each entity, discussing each in more depth. In this blog, we will address the Limited Liability Company or LLC.
An LLC is one of the newest business structures and has become the most popular for individuals who don’t want to run their business as a traditional sole proprietorship or partnership, or for individuals who don’t want to deal with the complexities of a corporation. Like a corporation by registering your company as an LLC with the Commonwealth of Pennsylvania, you are given exclusive rights to the business name.
LLCs, if run properly, are similar to a corporation in that the owner or owners have limited personal liability for the debts of the business. Without the establishment of an LLC or Corporation type business structure, the individual or the partners of the business are generally responsible for all debts. For an LLC, the individual or partners are not responsible for that debt, unless they agree to be personally liable for the debt.
For a Limited Liability Company, another one of the benefits is how they can be taxed. You can file your taxes as a sole proprietorship, partnership, s-corp, or even a c-corp. It is important to schedule an appointment with your accountant to discuss further how you will be filing taxes for the business, if you choose to set your business up as an LLC.
LLCs are very flexible entities and are perfect for a one individual operation all the way up to a large business. With the ease of set up and taxing flexibility, they are great for many different types of business ventures. If you’re interested in learning more about LLCs and want to see if that is the right choice for your business adventure, let’s chat. Contact us today to set up an appointment.
Disclaimer: This is a simple overview of the subject matter. Please consult an attorney for legal advice about starting up a Limited Liability Company.
Sher & Associates, P.C. is a law firm located in Kutztown PA that can assist you in any of the following areas: business law, real estate law, family law, equine law and estate planning. We assist many individuals, businesses and families in and around Fleetwood PA, Blandon PA, Topton PA, Hamburg PA and Oley PA.