Limited Liability Company 101 for Business Beginners
The meaning of LLC is limited liability company, a legal entity, a structure in business created by state law. It is used to run a business or hold assets like real state investments, vehicles, even aircrafts. It can be owned by singular or multiple owners. It is started by filing LLC information documents and pay the filing fee in your state. Asset protection is the main reason why LLC is formulated. Your personal assets is being separated by a wall from your business assets. If you are sued by your creditors, only the assets of the LLC are attacked, not the personal assets you have. So, if you will not form an LLC, your personal assets are also targets. One benefit of forming a LLC, is you don’t need a board of directors. Another benefit is you don’t need to hold board meetings or even make a record of it. Another benefit in LLC is no double taxation. All the properties are distributed however the owner wants it. LLC is very suitable for all business owners, investors, even real estate owners. LLC requirements are based on the state you are in. There are states in this country that are very good for business as well as for LLC formation. What are the states that we need to look for?
1.Wyoming. And the number one best state to form LLC is Wyoming since it is considered favorable to form any kind of LLC here. Wyoming developed a most favorable environment for doing business, recruiting people, and making the economic ambience set to the right designation. The state developed the giving of tax incentives to those who are always regular with their taxes.
2.Nevada. Nevada is the best state to form LLC since it doesn’t even have a state tax. The LLC rules are designed to make sure that business owners would want to stay here for good. It allows the LLC to be there and not be penetrated and have the income inside of it insulated from outside attack. Nevada LLC will not be liable for any of your personal obligations.
3.Delaware. This state should not be underestimated in the category of the best state to form LLC. The rules of LLC in Delaware are tremendously favorable to all business owners, even big investors. Your business assets in this state are firmly protected from different risks and financial attacks. Your personal assets are protected from creditors. This state will make you rethink of your future business plans and consider Delaware your home.
4.Texas. The state of Texas is the best state to form LLC according to most law firms this year. Texas has some of the highest exemptions from execution in the country. This state banked on these strategies to help them resolve supply and demand of businesses as well as proper asset protection.
To add, Kansas is also considered as the best state to form LLC.
LLC is designed to protect your assets, reduce the risk of mismanagement, and develop your success.