A limited liability company enjoys some of the positive features of the other business structures. Like a corporation, LLCs offer the benefit of providing you with limited liability protections.  In addition, an LLC will have less paperwork and ongoing filing requirements.  You can take an LLC a step further and make an election as to how you want the IRS to tax your LLC. For example, you can make an election to have the LLC treated as a corporation or another pass-through entity on your taxes.    

​

Advantages of a Limited Liability Company​

• Owners do not have personal liability for the debts or liabilities of the business.  

• You can make an election to have your LLC taxed as a partnership or as a corporation.

• Not as many formal requirements as you would incur with an S-corporation or a C-corporation. 

 

Disadvantages of a Limited Liability Company​

• Creating an LLC is more expensive than operating under a simple sole proprietorship. 

• The LLC must be registered within the state it operates which can require additional filing requirements with the state.  

​

Altogether, LLCs are a popular option because they have the ease of operation found within a sole proprietorship. Most importantly, LLCs provide the legal protections you would find within a corporation.