LLCs, or limited liability companies, are one of the most flexible business entities. They allow you to choose how to distribute the profits, decide who manages the business's day-to-day affairs, and decide how the profits are to be taxed. They also offer a lot in terms of liability protection. The overall advantages of the LLC include the following:
Personal liability protection: Any creditors who come knocking or lawsuits filed against your business can't affect you personally. You can rest assured that no matter what happens in the business, your family's assets are safe.
Business liability protection: An LLC is one of the only entities that can prevent personal lawsuits and creditors from liquidating your business to satisfy a judgment.
No ownership restrictions: You can have as many owners as you need. Even other entities can be owners!
No management restrictions: Owners can manage and managers can own — you decide.
Flexible tax status: You can choose from a multitude of ways to be taxed, depending on what works best for your situation.
No separate tax returns: With a standard LLC, the business's profits and losses are reported on your personal tax returns.
No double taxation: Unlike some business structures, LLCs can have pass-through taxation. This means that the profits won't be taxed at the company level, only at the individual level.
Flexible profit distribution: You decide what percentage of the profits to give to whom — no matter how much of the company the person actually owns.