Welcome to another video from Jon’s Bookkeeping.
I’m Jon Cooney and today I want to talk about limited liability companies, or LLCs.
Are you considering an LLC business entity? In this video, I’ll dive into the basics, benefits, and different types of LLCs.
An LLC is a hybrid business structure that combines:
Limited personal liability protection for owners (members)
Flexibility in ownership and management structures
Pass-through taxation (default)
Simple and flexible governance
The benefits of an LLC include:
Personal liability protection: separates personal and business assets
Tax flexibility: choose from pass-through taxation or corporate taxation
Flexibility in ownership and management: customize roles and responsibilities
Enhanced credibility and professionalism: build trust with customers and investors
Potential for better funding options: attract investors and lenders
There are several types of LLCs:
Single-member LLC (SMLLC): one owner, simplified management
Multi-member LLC (MMLLC): multiple owners, flexible management
Professional LLC (PLLC): for licensed professionals, such as lawyers or doctors
Series LLC: for holding multiple businesses or assets
Here’s an LLC example:
Imagine a freelancer starting an LLC.
They'll enjoy personal liability protection, tax flexibility, and enhanced credibility.
As the business grows, they can add members or change management structures.
In summary, LLCs offer protection, flexibility, and room for growth.
Consider your business goals, liability concerns, and financial situation before deciding.
Consult with a professional to ensure you're making the best choice.
And if you need business entity guidance or bookkeeping services, schedule a free consultation call with me.
We can discuss your professional needs and business situation.
I’m sure I can help you and I look forward to speaking with you!
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