Form an LLC

Why choose a limited liability company vs. a corporation?

Limited Liability Companies combine the limited liability advantages of corporations with the control and tax advantages of a partnership. While setting up an LLC is more difficult than creating a partnership or sole proprietorship, running one is significantly easier than running a corporation. The entity is taxed like a partnership - income and losses are accounted for on the owner's individual tax returns. Also, a limited liability company can be owned by non U.S. citizens/resident aliens and other business entities and have unlimited number of members.

In summary, an LLC has the following benefits:

• Liability protection like a corporation - LLC members are generally protected from personal liability for business debts and claims. This means that if the business can't pay a creditor or gets sued, the creditor cannot legally come after the member's personal assets such as a house or car.
• Management - A limited liability company provides flexibility in business organization and management. The owners can be individuals, trusts, partnerships, corporations and non-resident aliens. There are significantly less formalities to maintain an LLC compared to a corporation.
• Maintenance - LLCs are less formal than corporations and do not have the same corporate formality requirements such as having an annual meeting or taking minutes.