What are the advantages of forming an LLC?
A Limited Liability Company combines the advantages of a corporation and a partnership. The members of the LLC are allowed limited liability protection of a corporation with the pass-through taxation of a partnership. All personal assets of the members are protected from creditors for debt and from judgments against the LLC. Provided a member did not use their personal assets to secure loans or personally guarantee the debt. Unlike a Sub-Chapter S Corporation whose shareholders are limited to 75, there is no limit to how many members an LLC can have. For the flexibility and taxation benefits, LLCs have become very desirable to business owners.
