Find out which business structure is best for you (2 of 3)

      How you setup your business could have a big impact during tax time. So take note. How you setup your business could have a big impact during tax time. So take note.     Hi  Yesterday we examined the advantages and disadvantages of both Sole Proprietorship and Partnership business structures. These two options might be perfect for those just starting out but before you make a decision, read about the benefits of a Limited Liability Company (LLC) they might surprise you! Hi  Yesterday we examined the advantages and disadvantages of both Sole Proprietorship and Partnership business structures. These two options might be perfect for those just starting out but before you make a decision, read about the benefits of a Limited Liability Company (LLC) they might surprise you! Limited liability company (LLC)  [If you want to completely separate your personal assets from your business security, a limited liability company is the safest option to choose.]( An LLC is the simplest structure that achieves an incorporated status. All other variations of corporations are also incorporated companies.  Advantages of an LLC structure  Superior asset protection - If an LLC business is being sued its structure protects the personal assets of the business owners. In fact, an LLC structure offers the best protection for your business assets compared to all other business structures.  Simpler tax returns - Members are required to submit only one tax return so profits are only taxed once.  You can start an LLC alone - You don't require multiple business partners in order to launch a limited liability company. You can be the only business owner if you wish.  Lean startup costs - Though the cost of establishing a limited liability company varies from state to state, these costs are relatively light and affordable.  Disadvantages of an LCC structure  Negligence could lead to asset loss - Even though an LLC structure provides superior asset protection, this protection is forfeited if any negligence is detected. Some examples of negligence are: - Using company funds for personal use - Engaging in fraudulent behavior - Not exercising proper control of the company  Taxed as self-employed - Since all members of an LLC are classified as being self-employed, they're responsible for paying their own social security taxes and medicare taxes.  Ongoing annual fees - There are ongoing annual fees that need to be paid in order to maintain an LLC.  Difficult to raise money - Just like sole properties and partnerships, LLC's cannot issue shares to investors. This makes it much more difficult to secure investor funding.  Limited life - Since all members of an LLC are classified as being one entity with the business, if any of the members withdraw either willingly or due to death, the business is dissolved.  Tomorrow we'll look at the sometimes confusing world of corporations. C-corp, S-corp or B-corp which structure could work best for your new business?  And always remember, the information contained in this email is in no way legal, financial or tax advice. Please check the relevant legal, financial or tax departments within your local area before making any decisions. Limited liability company (LLC)  [If you want to completely separate your personal assets from your business security, a limited liability company is the safest option to choose.]( An LLC is the simplest structure that achieves an incorporated status. All other variations of corporations are also incorporated companies.  Advantages of an LLC structure  Superior asset protection - If an LLC business is being sued its structure protects the personal assets of the business owners. In fact, an LLC structure offers the best protection for your business assets compared to all other business structures.  Simpler tax returns - Members are required to submit only one tax return so profits are only taxed once.  You can start an LLC alone - You don't require multiple business partners in order to launch a limited liability company. You can be the only business owner if you wish.  Lean startup costs - Though the cost of establishing a limited liability company varies from state to state, these costs are relatively light and affordable.  Disadvantages of an LCC structure  Negligence could lead to asset loss - Even though an LLC structure provides superior asset protection, this protection is forfeited if any negligence is detected. Some examples of negligence are: Using company funds for personal use Engaging in fraudulent behavior Not exercising proper control of the company  Taxed as self-employed - Since all members of an LLC are classified as being self-employed, they're responsible for paying their own social security taxes and medicare taxes.  Ongoing annual fees - There are ongoing annual fees that need to be paid in order to maintain an LLC.  Difficult to raise money - Just like sole properties and partnerships, LLC's cannot issue shares to investors. This makes it much more difficult to secure investor funding.  Limited life - Since all members of an LLC are classified as being one entity with the business, if any of the members withdraw either willingly or due to death, the business is dissolved.  Tomorrow we'll look at the sometimes confusing world of corporations. C-corp, S-corp or B-corp which structure could work best for your new business?  And always remember, the information contained in this email is in no way legal, financial or tax advice. Please check the relevant legal, financial or tax departments within your local area before making any decisions. Need help choosing how to best structure your business? Then hire an expert business consultant for advice on which option is best for you! Need help choosing how to best structure your business? Then hire an expert business consultant for advice on which option is best for you! [Hire a Business Consultant](   [Facebook]( [Twitter]( [Instagram]( [YouTube]( [apple store]( [google play]( [Facebook]( [Twitter]( [Instagram]( [YouTube]( [apple store]( [google play]( © 2022 Freelancer Technology Pty Limited. All Rights Reserved. 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