1. Protects owners from liability:
An LLC protects owners from incurring any personal debt or liability from the business. This includes if a co-owner commits any form of wrongdoing.
2. Limited Requirements:
Avoids unnecessary corporation requirements while simultaneously offering liability protection
3. Tax advantages:
LLCs do not have their own process of federal income tax. Allows LLCs to be taxed as sole proprietorships, partnerships, S corporations (click for more details), or C Corporations (click for more details). Additionally, LLCs are eligible for Pass-Through Taxation, which means owners are able to use business profits (or losses) on personal tax returns.
Unlike S Corporations, LLCs, do not limit the number of shareholders and owners. This gives the organization flexibility on how they wish to operate.