What is a limited liability company (LLC)?

A limited liability company (LLC) is a legal type of business structure that offers the pass-through taxation benefits of a partnership or sole proprietorship with the limited liability benefits of a corporation. Owners of an LLC therefore aren’t personally responsible for the debts or obligations of their business.

Should you start a business as an LLC?

It also differs from a traditional corporation such as a C-corp, which offers limited liability but is subject to double taxation. For this reason, anyone starting a business should consider incorporating as an LLC for liability and tax reasons. LLCs can be either single-member or multi-member as well as member-managed or manager-managed.

Is an LLC a good business structure?

An LLC has the advantage of having more credibility to customers and vendors than a sole proprietorship. As a matter of perception, people tend to see an LLC as a more established company, as opposed to a one-person show. As you can see, many successful companies have embraced the LLC business structure because of its many benefits.