Why form an LLC in the first place?
The primary purpose of forming a LLC is to take advantage of the “limited liability” properties this form of business provides. While incorporating also provides liability protection, most people choose an LLC because it is just really simpler to maintain than a corporation. Also, an LLC is easier to form and not as expensive as incorporating. Another reason for its popularity is its use as an investment holding vehicle. LLCs are generally less complicated to form when compared to drafting a trust. While an LLC is most commonly used as a form of business, it may also be inexpensively and quickly set up for use to own real estate and other types of property. Formation requirements are minimal. If a limited-liability company holds real property, as a general rule, it will expose its owners to less capital gains tax than a corporation. Ask your CPA about this before you form a corporation.
