The business structure that may serve your needs most effectively depends largely on the type of North Carolina business you wish to operate. While there are a number of different business structures, one of the most popular is the limited liability company. This is due in part to the many benefits it provides.
What are some of the benefits you enjoy as a business owner when you establish your entity as an LLC?
Ease of operation
When compared against other business structures, such as corporations, LLCs are pretty easy to operate. There is less red tape involved in operating an LLC than a corporation. You typically also do not have to hold regular meetings or file considerable paperwork with this type of business structure, either.
Limited personal liability
Among the big advantages of an LLC is the fact that this structure type protects your personal assets if someone sues or secures a judgment against you. Put simply, it creates a clear barrier between your business assets and your personal ones.
You also enjoy certain tax benefits if you choose to incorporate as an LLC. For example, you benefit from pass-through taxation, which means your company does not have to pay corporate taxes. Instead, your business’s income and its expenses become a part of your personal tax return and you pay a personal tax on the profits it generates.
While an LLC may not be appropriate for all business types, it offers many advantages that make it appealing to small business owners.