Start Your Business Today with Professional LLC Formation Services

A Limited Liability Company, or LLC, is a form of business that protects the owners from personal responsibility toward company debt or legal trouble. That is to say, if the LLC is sued or gets into some other financial trouble, the owners’ personal assets – their house, their car, for example – usually won’t be affected. In addition to liability protection, LLCs are “pass-through” entities for tax purposes, meaning the business itself will not pay taxes. Instead, the owners report the profit and loss from the business on their individual tax returns.

LLCs are so popular due to some degree of flexibility and simplicity. The owners may choose how the business is to be managed, and there are fewer formal requirements compared to corporations-for instance, no board of directors is mandatory, or annual meetings. LLCs have become highly in demand since they suit most small business owners who need to protect their personal assets without going through hard-and-fast rules.