Starting a business is a significant endeavor. The business structure you choose has numerous consequences, including the extent of your personal liability and how you’ll pay taxes. You may be thinking about forming a limited liability company (LLC). Before you file all the paperwork, here are some things you should know about starting and operating an LLC.
Definition of an LLC
An LLC is a corporate entity that combines the benefits of a corporation and a partnership. LLCs have the personal liability protections of corporations and the taxation flexibility of partnerships. An LLC can have one or multiple members.
Limited Liability Protections
One of the most attractive features of an LLC is the fact it protects members from personal liability.…