How To Setup A Limited Liability Company
Setting up a LLC or limited liability company is considered as one of the biggest decisions a company could make. Limited liability company registration may be a contributing factor for the company's success or bankruptcy. But the first thing any business that wants to set up an LLC should do is to get
good advice. Money and time is very essential in a company which is also needed in LLC registration and aside from the company will encounter advantages and disadvantages. Looking for alternatives would be a great help before putting up a business.
Sole proprietorship is considered the easiest form of business registration. Considered the most basic way of enrolling a certain individual who is interested on putting up a public commerce and important aspect of the business. Sole proprietorship business registration is mainly considered as one of the most direct form of business registration which includes minimal fee payments and obtaining business numbers which may permit the company to start the business. This will enable the individual to start up the new business and consider all of the fundamental things needed in liabilities and tax issues of the business.
Incorporation is considered one of the most complex form of business registration. Issuing shares to others who are also interested to be part of the business and registering the business to a corporation is included. It is a must that one should ask help from a legal and financial adviser to make sure that the documents are in order in filling acts of incorporation. There should be a Board of Directors, officers of the corporation and arrangements in informing shareholders about what is going on in the company.Anywhere in the two options given LLC is another option. An LLC is more complex than a sole proprietorship and simpler than incorporation. Some benefits and incentives are present. The disadvantages in LLC is that you will be going to spend additional time and money on this kind of registration. Disadvantages of LLC will automatically sink in by the time it is approved.LLC's main goal is to protect business owners from any form of liability.This kind of business registration enable the company to put limitations of liabilities to level of investment and liability limitation are some of LLC's requirement. If the company will have debts and other damages engaged during the operation of the business, LLC will no longer be responsible for that. The other main reason to set up an LLC is for taxation purposes. Paying the tax once and with no additional income tax is one of the benefits for having a limited liability company. Not like in company corporation that personal and corporate income are both taxed when dividends are distributed.
by: Diane Enriquez