There are many benefits in creating a limited liability company, especially when you weigh the risks that are associated operating as a sole proprietorship. Most home-based businesses operate as a sole proprietorship. When you operate your business in such a manner, the individual owner is assuming the risk of the operation of the business, and will be solely held responsible for the operations of the business. In other words, the individual owner of the company has little to no legal protection. Here are some of the benefits of forming a limited liability company.
Protected assets:
LLCs provide limited liability protection to their owners (members), who are typically not personally responsible for the business debts and liabilities of the LLC. Creditors cannot pursue the personal assets (house, savings accounts, etc.) of the owners to pay business debts. Conversely, in a sole proprietorship or general partnership, owners and the business are legally considered the same—leaving personal assets vulnerable.
Pass-through taxation:
LLCs typically do not pay taxes at the business level. Any business income or loss is "passed-through" to owners and reported on their personal income tax returns. Any tax due is paid at the individual level. This is a tremendous advantage for individuals who own a home-based business, because you will qualify for the tremendous tax advantages of operating a business from your home.
Heightened credibility
Forming an LLC will help your home-business establish credibility with potential customers, employees, vendors and partners because they see you have made a formal commitment to your business.
Limited compliance requirements:
LLCs face fewer state-imposed annual requirements and ongoing formalities than corporations.
Flexible management structure:
LLCs are free to establish any organizational structure agreed upon by the company owners. LLCs can be managed by the owners (members) or by managers, unlike corporations which have a board of directors who oversee the major business decisions of the company and officers who manage the day-to-day affairs.
Few restrictions:
There are few restrictions on who can be an LLC owner or how many owners an LLC may have (unlike S corporations).
In my opinion it makes sense to operate your business as a limited liability company. You have legal protection, tax advantages and the benefits of owning and operating your own home-based business, without personally assuming the risk. If you’re thinking of forming a limited liability company (LLC), be sure to understand what information will be required to legally create an LLC. The formation document for an LLC is called the Articles of Organization or Certificate of Organization. Each state has its own version, so the amount and type of information required varies.
Forming a limited liability company (LLC) can be complicated if you don’t know what you are doing. While there are online services that can help you form the LLC, most are impersonal and overpriced. The most popular website is legalzoom.com, and they charge $149 - $359 + the filing fee for the state in which you wish to form the LLC. You also have the option of having an attorney draft and file the necessary paperwork to form your LLC. However, generally the legal expenses associated with the formation are $500 or more.
I believe that forming a LLC is a valuable advantage for those who are currently operating, or are considering starting a home-based business. I have over 10 years in the network marketing industry, and I desire success for everyone who starts a home-based business, regardless of the business opportunity that you’ve chosen.
The other night, I was in bed and an idea came to my head. In an effort to help as many people as possible, I’ve decided allow the consulting division of my company, to form LLCs for home-based businesses. We will provide this service for only $99.95 + the filing fee for the state in which you wish to organize your LLC. My staff will search the business registration directory of your state to make sure that your business name is available. Once a business name as been chosen they will draft the “Articles of Organization” to form your LLC as well as an “Operating Agreement” which will be required to explain the rights and responsibilities of the owners of the LLC. It will also indemnify you and protect you from personal liability when you are acting on the behalf of your business. Lastly, my staff will assist you in filing the necessary documents with the IRS and obtaining a federal employee identification number (EIN).
After the necessary documents are completed my staff will file them with the required state agency and your LLC will be operational. In addition to all of these services you will receive personal access to me during normal business hours for any related questions concerning the formation of your limited liability company.
If you would like to take advantage of this offer please email llc@networkinglifestyles.net. Please provide your name and phone number in the email. A member of my staff will contact you concerning the steps required to complete the formation of your LLC. If you have additional questions before you commit to forming a limited liability company you should email llcquestion@mypersonalattorney.com.
Posts
No comments:
Post a Comment