Limited Liability Company 101 for Business Beginners
Limited Liability Company or LLC is an entity legally created by the state for business structuring. LLCs can run your real state investments, boats, vehicles, and aircrafts like a business. It can be owned by one or multiple persons. Paying the filing fee and filing the corresponding LLC information documents to your state are the first steps. If you want your assets to be protected, forming a LLC is the best solution. It is like creating a wall between your business and personal assets. If worse comes to worst, only your assets of LLC are being attacked, if you are sued, but not your personal assets. So, if you will not form an LLC, your personal assets are also targets. This is one of the benefits when forming a LLC, board of directors are not needed compared to corporations. It doesn’t need to hold board meetings or keep a record of it. Another benefit in LLC is no double taxation. However the owner decides, the properties are distributed accordingly. LLC is the most flexible structure for businessmen, even real estate owners. LLC requirements are based on the state you are in. There are states in this country that are very good for business as well as for LLC formation. So what are these states?
1.Wyoming. Wyoming is considered the best state to form LLC according to most LLC lawyers and experts. Wyoming has learned over the last 12 years that one of the ways to bring any business or any people to them is to create a favorable economic environment. This state provided the unique idea of reducing taxes on business firms.
2.Nevada. Nevada is the best state to form LLC since it doesn’t even have a state tax. The LLC rules are designed to make sure that business owners would want to stay here for good. Incomes are insulated from the outside attacks in the sphere of LLC. Nevada LLC will not be liable for any of your personal obligations.
3.Delaware. This state should not be underestimated in the category of the best state to form LLC. The LLC rules in this state are favorable to real estate investors and entrepreneurs. The LLC insulation protects the business assets and protects it from large risks. And the rest of your assets are not affected. This state will make consider staying here for good.
4.Texas. Texas is also the best state to form LLC. You can have holdings that are themselves exempted under state exemption law from being executed, levied on. This state banked on these strategies to help them resolve supply and demand of businesses as well as proper asset protection.
The state of Kansas is declared also as the best state to form LLC.
LLC is designed to protect your assets, reduce the risk of mismanagement, and develop your success.