{"id":18251,"date":"2022-01-19T06:05:34","date_gmt":"2022-01-19T06:05:34","guid":{"rendered":"https:\/\/www.openbusinesscouncil.org\/?p=18251"},"modified":"2022-01-19T06:05:34","modified_gmt":"2022-01-19T06:05:34","slug":"4-things-you-should-know-about-starting-an-llc-2","status":"publish","type":"post","link":"https:\/\/www.footballthink.com\/4-things-you-should-know-about-starting-an-llc-2\/","title":{"rendered":"4 Things You Should Know About Starting an LLC"},"content":{"rendered":"
The two most popular types of business in the United States are sole proprietorships and corporations. Sole proprietorships have a lot going for them, including simplicity and low cost. However, there are some drawbacks that you need to know about before deciding whether this is the right choice for your new business.<\/strong><\/p>\n A corporation has many benefits too, but it’s more complex to set up and will likely be more costly when all is said and done. You’ll also need an attorney or accountant who specializes in corporate law because it requires a different type of formal legal structure from what a sole proprietor needs. On top of these complications, corporations also face higher taxes than do sole proprietorships. If you’re thinking about incorporating your business at some point in the future, there are several things you need to know about starting a corporation.<\/p>\n <\/p>\n While most corporations begin with an attorney, this isn’t required by law. Many new businesses opt to use a form of a business structure called a limited liability company (LLC). An LLC is a type of organization that combines the pass-through taxation of a sole proprietorship or partnership with the limited liability protection of a corporation, you can read more here<\/a><\/strong>. This sounds complicated, but it’s what makes an LLC so attractive to budding entrepreneurs. An LLC allows you to take advantage of some of the benefits and drawbacks (discussed below) associated with both structures without having to hire an attorney or file complex paperwork.<\/p>\n Most businesses that will operate as a sole proprietorship don’t need to meet the requirements necessary to create an LLC<\/strong><\/a>. This includes having multiple members, which is one of the benefits of an LLC versus a sole proprietorship. It’s possible for a business to qualify as an LLC without having more than one member, but it’s more complex and will cost more in legal fees. This is why many new entrepreneurs are better off starting a sole proprietorship for their businesses.<\/p>\n1. One Form of Structure You Can Use for Your Corporation<\/strong><\/h2>\n
2. A Sole Proprietorship Can Be Easier than an LLC for Some Businesses<\/strong><\/h2>\n
3. An LLC Offers Liability Protection Like a Corporation<\/strong><\/h2>\n