What business form is best for a business that is looking for protection from liability?
Full Question:
Several people have decided to open a new business and they are trying to decide which form of business provides them with the most flexibility and protection, without being overly burdensome with regulatory issues. What business form offers the best choices for a business that is looking for protection from liability, while still maintaining flexibility?
01/05/2007 |
Category: LLC |
State: Alabama |
#136
Answer:
A Limited Liability Company (LLC) provides tax advantages, protection from individual liability, and a flexibility from burdensome regulatory issues that accompany corporations.
The LLC offers these advantages:
1)Members have protection from personal liability;
2)No federal corporate income taxes;
3)No need to meet the normal requirements and formalities of a corporation (such as a regular Board of Directors meeting);
4)Flexibility for members to draw up their own operating agreement;
5)In a number of states, an LLC can be formed by a single member.
