Kennelly Business Law

Call today: 701-526-4822

The LLC business structure is popular due to its many benefits

One of the first steps of starting your own business is selecting the structure for that business. It is important that you choose the right business structure for your situation because your business structure can affect taxes, your control over your business, the amount of paperwork your business must complete and the amount of personal liability you could be exposed to.

A limited liability company (LLC) structure is a popular option for many entrepreneurs. This is easy to understand because an LLC utilizes benefits of both the corporation and partnership structures.

Protection from personal liability

Similar to a corporation, an LLC can protect you from personal liability. This means that your personal assets like your house or your car are kept legally separate from your business assets. This also means that if your business faces a lawsuit or bankruptcy, you will not risk losing your personal assets.

Flexible taxation

Similar to a partnership, an LLC allows profits and losses to pass down through personal income. This allows you to avoid corporate taxes, though you must pay self-employment taxes. However, LLCs are flexible, so you may instead choose to be taxed as an S corporation, which would only apply self-employment taxes to salaries and wages but not distributions.

Few requirements

Unlike a corporation, an LLC involves few ongoing compliance requirements. For example, you need not create a board of directors or submit annual reports. You will also have less paperwork to complete to get an LLC started than to get a corporation started.

Although an LLC can have many benefits, it is not the best choice for every business. It is important to understand all of your business structure options, so you can make the best choice for your situation.

No Comments

Leave a comment
Comment Information
EMAIL US FOR A RESPONSE

Contact The Firm

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

${site.data.firmName}${SEMFirmNameAlt}

313 NP Ave
Fargo, ND 58102

Phone: 701-526-4822
Fax: 701-478-4330
Fargo Law Office Map

253 Central Ave NE
Valley City, ND 58072

Phone: 701-526-4822
Phone: 701-845-2701
Fax: 701-478-4330
Map & Directions

602 Dakota Avenue
Wahpeton, ND 58075

Phone: 701-526-4822
Map & Directions

map
map
map