The following are the four main benefits of forming an LLC.
1. Protects Your Personal Assets
When you start a new business, you put everything into it. This includes money, time, energy, and even your reputation. If something goes wrong, you could lose everything. However, if you form an LLC, then you will be protected from lawsuits and creditors.
2. ProvidesComplete Control Over Operations
An LLC provides complete control over the operations and finances of the company. It gives you full authority to manage the day-to-day operations of the company.
3. Allows Owners To Hire Employees
If you want to hire employees, then you need to form an LLC. An LLC lets you hire employees without having to worry about paying payroll taxes. In addition,you don’t have to pay social security contributions out of your own pocket.
4. You Can Form an LLC in Any State.
If you want to start a business, there are certain states where it's easier to incorporate than others. For example, incorporating an LLC takes less paperwork in Nevada than it does in New York. Some states require that you physically reside within its borders. However,this isn't true of every state. In fact, you can incorporate an LLC wherever you go as long as you have a local agent.
Incorporating an LLC doesn't necessarily mean that you'll end up using one. Incorporation is just the first step towards becoming a limited liability company. From there, you're free to operate however you wish.