Limited Liability Company 101 for Business Beginners
Limited Liability Company or LLC is an entity legally created by the state for business structuring. It is used to run a business or hold assets like real state investments, vehicles, even aircrafts. It can be owned by one or multiple persons. It is started by filing LLC information documents and pay the filing fee in your state. Asset protection is the main reason why LLC is formulated. It is comparison to a wall between your personal assets and business assets. If you are sued by your creditors, only the assets of the LLC are attacked, not the personal assets you have. Bear in mind that when you do not form a LLC, all of your personal assets are going to be attacked too. This is one of the benefits when forming a LLC, board of directors are not needed compared to corporations. Say no more to holding board meetings in LLC. There is no double taxation in LLC. All the properties are distributed however the owner wants it. LLC is the best business structure for all business owners and investors alike. LLC requirements are based on the state you are in. Not all of the states in this country are suitable for business, but there are those which are best not just for business but for LLC too. What are the states that we need to look for?
1.Wyoming. And the number one best state to form LLC is Wyoming since it is considered favorable to form any kind of LLC here. Wyoming has developed the right economic environment to persuade people to live there and bring business in. The state developed the giving of tax incentives to those who are always regular with their taxes.
2.Nevada. We all know that the state that doesn’t have a state tax means Nevada is the best state to form LLC. They have created favorable corporation and LLC rules. Incomes are insulated from the outside attacks in the sphere of LLC. And the liabilities outside of the company that might attack your members that could adversely affect the entity in which they’re a holder in.
3.Delaware. Delaware is another option for best state to form LLC. The rules of LLC in Delaware are tremendously favorable to all business owners, even big investors. The LLC insulation protects the business assets and protects it from large risks. The rest of your assets, personal are not touched. This state will make consider staying here for good.
4.Texas. The last but not the least, Texas, another best state to form LLC. It is an alternate risk management method using the state laws that were passed by the governments. This state banked on these strategies to help them resolve supply and demand of businesses as well as proper asset protection.
Some experts would add Kansas as one of the best state to form LLC.
LLC was created to give proper asset protection from both your business and personal assets, minimize the bad results of mismanagement, et cetera.