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Determine whether creating an LLC is the best decision for you and your business.
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What is an LLC?
An LLC, Limited Liability Company, is one of the least complex business structures. Unlike an S corp or C corp, an LLC’s structure is flexible. This gives you the perk of pass-through taxes, limited liability and legal protection for your personal assets.[/vc_column_text][vc_column_text]
What are the advantages?
- Pass-through taxes: There is no corporate tax return needed; owners report their share of profit and loss on their individual tax returns. This also means you avoid getting taxed twice!
- Owners do not need to be U.S. citizens or permanent residents
- Owners have limited liability for business debts and obligations
- Reinforce credibility: You look like a more favorable business in the eyes of suppliers, vendors and customers.
An LLC offers some very attractive features but there are a few concerns to think about when deciding on whether you want to create an LLC for your business.[/vc_column_text][vc_column_text]
What are the disadvantages?
- Stock: With an LLC you cannot issue shares of stock to investors
- Some states will treat LLCs differently
- Your earnings can be subject to self-employment tax
We recommend determining your short-term versus long-term goals for creating an LLC and how you want your business to grow. Factoring in all the options is a great way to determine if an LLC is right for you. Reach out to your local Harrisburg NC CPA to advise you through the process and determine if creating an LLC is the best route for your business.[/vc_column_text][/vc_column][/vc_row]