When your newly established company is doing good, you may feel like you’re on top of the world. You’re always inspired to work and you strive more to make your business surpass your competitors. When your business becomes successful, you feel that all your hard work and efforts are paying off.
While being successful can bring you the feeling of satisfaction, there is nothing more rewarding than protecting what you own. As unfortunate events like lawsuits can take away your business, you need to incorporate it and form a Limited Liability Company or LLC.
Compared to sole proprietorship and corporations, LLC provides many advantages. It combines the element and features of corporation and partnership models and it can protect the interests of your business.
When you want to establish a good reputation, forming a limited liability company is the best way to do it. As LLC in your company name means permanence and credibility, people will recognize your business as a legal identity. By just reading your business title, people will know that your company meets the standards set by the Secretary of State’s office.
Although LLC is not a corporation, it shares some responsibilities with a corporation. This means that a single member or multiple member LLC must pay the taxes like a sole proprietorship or partnership. In some cases, an LLC pays taxes like a corporation. It works via a pass–through taxation method, which gives businesses flexibility in paying taxes.
When your business operates as a sole proprietorship, you are most likely to lose everything just to pay your debts. With an LLC, however, you and the other owners are protected from liabilities such as debts and lawsuits. This only means that creditors cannot go after your assets as payment to the business’ debts. It offers protection between the company and owner’s personal properties.
When you run a corporation, you need to consult with the board of directors for approval of your business plans. It is up to their votes on whether they will consider your new idea or reject it. This situation may not happen when you form an LLC. With this type of organization, you are free to decide on who will handle your managerial duties and other activities.
When you want to secure and protect your company, incorporate online and form an LLC. With the LLC’s unique business structure, you can protect your personal assets as well as the interests of your business.