While the first business structure many sole proprietors think of is the corporation, many simply aren’t aware of the benefits that the Limited Liability Company provides.
While both the LLC and the S Corp (the most common corporation structure for small businesses) protect your personal assets, offer tax flexibility, and make it easier to raise capital, there are a few ways LLCs differ.
Number and Type of Owners
While S corps must be owned by individuals (or trusts) that are U.S. citizens or residents, and there must not be more than 100 shareholders, LLCs have fewer restrictions on ownership. LLCs may be owned by other LLCs or corporations and the owners don’t need to be U.S. citizens or residents. There may be an unlimited number of owners in an LLC. Continue reading “Why You Should Rethink the LLC” »