Most people who have ever thought of forming a business have thought that there had to be some real advantages to forming a business that is LIKE a corporation without having to be a corporation. This is where forming an LLC or a Limited Liability Company comes into play. People that form a business and do it as an LLC do not have to worry so much about keeping as detailed and exact records and meeting minutes as a corporation would have to.

Another benefit to forming a Limited Liability Company over a normal corporation is that forming an LLC still gives you liability protection. Liability protection protects you from lawsuits in court proceedings. Persons in the LLC also get personal liability protection. There are tax advantages to being in a Limited Liability Company as well. You can be taxed either as a LLC or as a corporation. You get many of the benefits of a corporation with out some of the hard work and drawbacks that come with having to do all of the paperwork, keep perfect records that are meticulous.

Working in a Limited Liability Company also means that you do not have to hold and carry out formal corporate meetings. There are ways that formal meetings can and can not be conducted. Formal meetings are much more rigid and strict than a more informal meeting would be held if it was with a Limited Liability Company.

There are more key and distinct differences between a Limited Liability Company, a Corporation, An S Corporation, and Sole Proprietorship’s. The big difference is that a Limited Liability Company is not run the same way as any of the other corporations, and a Limited Liability Company has much more operating flexibility than the others mentioned.

Another benefit is of course that a Limited Liability Company is a pass-through entity for tax purposes. This means that the Limited Liability Corporations profits are passed through and taxable to the owners of the LLC. If you are wondering what pass-through means when referred to taxes and profits this simply means that the Limited Liability Company is not directly taxed, but, the persons in the LLC are.

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