- The business structure you choose influences everything from day-to-day operations, to taxes, to how much of your personal assets are at stake by what your business is doing.
- The five most common structures in the U.S. are sole proprietorships, partnerships, corporations, S- corporations, and limited liability companies (“LLC”), each with their own pros and cons.
An LLC is good option for many small business. It can protect your personal assets – things like your car, house, and savings account – if your LLC faces bankruptcy or lawsuits. In other words, even if your business gets in legal hot water, your non business assets can’t be lost. There are also tax advantages to an LLC; profits and losses can be passed through to your personal income, which is subject to a lower tax rate than if your business was a corporation, for example. Not sure what to pick? Book a Legal Strategy Session with Reid Council Law Firm. Visit http://www.reidcouncillaw.com or call (215) 258-4620 today.