WHAT IS AN LLC?
The LLC business structure, which stands for Limited Liability Company, is widely known as a “pass-through” entity because the profits of an LLC company flow directly to the managers/members. This type of business structure is quickly becoming the most common form of incorporation.
LLCs have a relatively flexible structure that provides many of the benefits of a partnership or sole proprietorship, with some of the protections provided by C corps and S corps. They do not require many of the formal processes required by other types of corporations.
However, LLCs are unable to offer stock to the public and are still required to keep a fair amount of internal paperwork. LLCs require an owner to follow filing regulations.
Companies that abuse the flexibility offered by filing as an LLC can lose their personal liability protection, in a process called “piercing the corporate veil.” If this happens, business owners can retroactively be held liable to pay corporate debts with personal funds.
Easier process for setup
Flexibility on taxes
Difficulty attracting investors for funding
Added formation costs and franchise tax for some states
If you've decided that forming an LLC is right for your company, EBW-Services is here to help you handle all the filings to start your business and keep it compliant.