What are the advantages of having a limited liability corporation or LLC?
LLCs perform two main forms of protection. One is that ownership of an LLC done properly can protect your business from your creditors. In particular, that’s when an LLC is owned by more than one member. The other major advantage of an LLC is it is very flexible on terms of how it’s going to be taxed for federal and state income tax purposes, depending again on the ownership of the LLC. LLCs can be disregarded for income tax purposes, taxed as partnerships, taxed as C corporations, which are taxable corporations or S corporations which are flow through organizations that don’t normally pay their own tax. Creditor protection and flexibility in terms of taxation are the two main benefits of LLCs.