Discover the Benefits of the Single Member LLC
There are several benefits to creating and managing a single member llc. The individual asset protection of the shareholders is the most important gain, but there are other rationals for forming an LLC.
Entrepreneurs take a lot of risks when they create their organizations. The personal and occupational risks that are undertaken should not be viewed lightly, and can produce serious financial outcomes if the company is not built properly.
The advantage of setting up an LLC is that instead of the personal assets of the entrepreneur being taken away or liquidated in times of problems, the LLC is the primary body that is liable.
Other than the financial aspects of a single member LLC, the opportunities that are allotted are alluring. The owner(s) of the LLC are in complete control of the destiny of the company. They dont have to answer to a board of directors, shareholders, or hold yearly general meetings. What the owner wants to do with the company, even if its not profitable, is what is accomplished. The basic management of the company is the complete responsibility of the founder.
One of the primary concerns when building your company is how it looks. New companies will struggle at the beginning, and one of the primary reasons is the credibility of that company. Everyone believes in Sears because they have been in business for ever. The new store on the corner that opened yesterday, however, has little creditabilty with customers. An LLC can go a long way towardgaining the respect in the market place that your company would benefit from.
Aside from the financial and image benefits of getting a single member llc, the most obvious is that it is relatively cheap to accomplish. There is a a tiny amount of paperwork associated with forming the LLC, and the cost to establish the business are, in most states, under $1,000. Additionally there are no requirements for citizenship when creating the business.
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