Why Should You Start an LLC?

Many business owners question what kind of business they should file with the IRS when first getting started. Always speak to a tax professional for your specific situation. At Texas LLC Experts, we often recommend LLCs to many new businesses. Here’s why:

Forming an LLC helps protect your personal assets

An LLC allows you to open bank accounts, enter into contracts, hire employees, and get business licenses and permits. Both LLC and corporations protect owners so they're not personally on the hook for business liabilities or debts. But, LLCs have one or more individual members, while corporations have shareholders. Additionally, corporations generally have more formal record-keeping and reporting requirements.

With an LLC, your personal assets cannot be used to collect on debts. You’re protected if anyone in your business is sued for negligence.

You Can Choose What Type You Want

Single-member LLCs can file as a sole proprietor. Multi-member LLCs can file as a partnership. Any LLC can file as a C or S corporation. Filing as an S corporation often saves business owners on taxes down the line.

LLCs are simple, adaptable, and perfect for many small businesses. While both corporations and LLCs offer their owners limited personal liability, owners of an LLC can take advantage of LLC tax benefits, management flexibility, and minimal record keeping and reporting requirements.

Ready to Start Your LLC?

If starting an LLC sounds right for you, reach out to our experts to get started today. All we need is the preferred name of your business!