Benefits of Setting Up a LLC
There are many benefits to setting up a LLC – some of them include: Asset protection, Personal Privacy, Tax planning advantages, Easier Marketing abilities, financial banking flexibility, makes raising capital easier, fringe benefits, continuity, and many many more!
There are some fees applicable to registering a business as an LLC similar to registering a corporation. Another added benefit is that you don’t necessarily need a lawyer to register a business as an LLC and this is especially useful for small businesses where both time and cash is at a premium. You can choose to get advice from a lawyer or an accountant about the choice of registering a business as a limited liability company but it is not required by law.
As noted above some of the benefits of registering a business as an LLC include tax advantages and limited liability. In addition limited liability companies have much more flexibility when developing a management and ownership structure and the reporting requirements are far less under this form of business registration.
The tax benefits of an LLC business registration are mostly gained through what is called pass-through taxation. This means that the profits from the business are only taxed once and owners do not have to pay both corporate and personal income tax on any monies earned through the business.
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