One of the most important aspects of starting a business is choosing the entity that offers the most benefit to your business. Limited Liability Companies are considered as the most commonly preferred business establishments of various fields. Limited liability is known by its legally recognized perpetual business entities. LLC incorporation is easy, simple and fast. LLC combines the flexibility of a partnership with the liability protection enjoyed by corporations. There are many advantages to forming an LLC over a corporation.

Flexible taxation

One of the biggest benefits of forming an LLC is that you have the option to choose how you pay taxes. The LLC tax rate depends entirely on the income of the owner. Under the Corporate treatment option, if you have a higher income, you will get lower tax rates.

Protection of personal property

By forming an LLC, you can protect your personal assets from those of your business, if a lawsuit is filed against your business. Thus, LLC makes your asset protected

No double taxation

Corporations are subject to double taxation, where the corporation first pays taxes at the corporate level and then on income that is distributed as dividends. LLCs are not subject to double taxation like Corporations. Business income is reported on your personal income tax return and removed once. You can approach a business tax preparation company near you to learn the procedure for filing the return.

Low audit risk

The sole proprietorship faces more IRS audit risk than the LLC. If you have put in the effort to form an LLC, then you are in the business where there is less risk of an IRS audit.

business flexibility

If you are running an LLC, then you have a wide variety of options for running the business. You can easily add members to your business without many formalities like in corporations. A Limited Liability Company is a flexible business structure that gives you a variety of options for running your business.

asset lease

If you are running an LLC, you can lease your personal assets to the company. This means that you can manage your LLC from your home office and show yourself as the LLC that rents the office to you. By doing so, you can write off business expenses and improve your financial situation. To do this, you need a formal lease.

Forming an LLC as a business structure is the best option for an average entrepreneur. If you are running an LLC business, contact the nearest Small Business Tax Services Company to run your business effectively.