What is an LLC?
What do you do with your brilliant idea for a business that would be beneficial for people and profitable for you? How do you begin that? When it comes to building a company or business, there are several options and routes to go. At Phelps LaClair we serve the greater Phoenix area, and have years of expertise in helping people establish and protect their LLC as part of their overall estate plan.
When you want to see the vision for your business fulfilled, an LLC could be a good way to go. LLC stands for a limited liability company. This is a simple business structure that allows you to build a separate and distinct legal entity. With an LLC, you are able to get a tax identification number, and open a bank account to conduct business. An LLC is a type of hybrid business style. There are characteristics of a corporation and a sole proprietorship within an LLC, but overall it is an unincorporated association and not a corporation itself. This could be the start of gaining ground on your vision becoming reality.
Benefits of an LLC
With the many business types that are out there and the routes you can take, there are certain benefits to establishing an LLC. Some aspects that make an LLC more advantageous include:
- There’s no need to file corporate taxes. Taxes for profits and losses can be claimed individually avoiding double taxation.
- Legal protection is established for the personal assets of the owner, as well as having limited liability for the business debts and obligations.
- Due to having a LLC, it creates credibility for other business you may be collaborating with.
- No requirement in regards to residency. The owner of an LLC does not have to be a U.S. citizen.
There are various other benefits of establishing an LLC for your business. To find out the exact benefits for you and your business plan, contact Phelps LaClair.
Applying for an LLC
To put your ideas into a reality, setting up your business through an LLC is a popular way to go. There can be differences in the application for an LLC depending on the state you reside in, so it’s best to know your specific state’s processes. Simplified, the application process starts with choosing a name for your business, registering it with the corporation commission and filing your articles of organization with your state’s business registration company.
Having ideas, dreaming big, and figuring out how to put your passion to paper can be a difficult process. Here at Phelps LaClair, we want to partner with you to bring your business to fruition and ensure full asset protection for you and your LLC.
Images used under creative commons license – commercial use (6/26/2017) openDemocracy (Flickr)