Limited Liability: An LLC provides limited liability protection for its owners, meaning that the owners are not personally liable for the debts and liabilities of the business. This can shield personal assets from creditors and lawsuits.
Pass-Through Taxation: An LLC allows for pass-through taxation, meaning the business does not pay taxes on its income. Instead, taxes are paid by the individual owners, who report the business’s income on their personal tax returns.
Flexible Management Structure: An LLC can be managed in a variety of ways, including by owners, managers, or a combination of both. This allows for a lot of flexibility when it comes to managing the business.