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What is an LLC Business? (Benefits & Disadvantages!) (2021)

“What is an LLC business?” This is a question I regularly answer in blogs and in-person. If you want to learn more about an LLC business formation, I can help you get your questions addressed and answered. Simply contact me at sam@mollaeilaw.com for all the details. Shoot me an email today and we can determine if an LLC business formation is right for your company. In the meantime, if you want to answer the question, “What is an LLC business?” you should read the following content to get a better idea of why this type of business entity is popular among both older and newer companies, especially companies that are newly established or are in the planning stage.   

What Is an LLC Business and What Makes It Different than Other Entities?

To learn more about the benefits and disadvantages of this type of business entity, answering the question, “What is an LLC business?” is essential. LLC is short for Limited Liability Company – a legal entity that is separate from a company’s owner.   

Personal Assets Protection – The Primary Benefit for Forming an LLC

An LLC is formed to protect an owner’s personal assets, such as his or her home, car, and bank account. Therefore, the owner can keep his or her assets safe if he or she is sued. You might say that this is one of the major benefits of establishing an LLC.   

Speaking the LLC Language

When you want personal asset protection, establishing an LLC is essential to your success as a start-up company. Just make sure you are speaking the language when you form an LLC.  Some people believe an LLC stands for Limited Liability Corporation. This is incorrect. An LLC is not a corporation but a company. I can explain these distinctions if you have further inquiries along these lines. Shoot me an email anytime at sam@mollaeilaw.com  

What Is an LLC Business Entity – Can You LLC Your Business?

While you can incorporate a business, you cannot LLC a business. Instead, when you answer the question, “What is an LLC business entity?” it is an entity that you form and establish and manage. Remember, too, that the entity is separate from you, the owner. That is why you form and manage it.   

What Is an LLC Business and Why Should You Form It?

When you answer the question, “What is an LLC business and why should you form it?” you need to distinguish the difference between it and incorporation. These differences are part of the advantages realized when forming this entity.  

LLCs versus Corporations – The Basic Differences


  1. LLCs do not elect a board of directors like corporations.
  2. LLCs also do not hold a board of director meetings – like corporations.
  3. LLCs do not have to keep records of their meetings and are not subject to double taxation like a corporation. Instead, an LLC enjoys pass-through taxation. The owner is taxed and pays taxes on his or her individual tax return, just as he or she would as a sole proprietor or a partnership.

 

What is an LLC Business – Is it Expensive to Establish?

When you answer this question, or “What is an LLC business – Is it Expensive to Establish? You will be happy to know an LLC is easy and affordable to establish. I can help you form your LLC at a cost that is well worth this type of formation. After all, it costs a lot more money to lose your house and car if you and your business are sued.  

Contact Me so We Can Get Started and Form Your LLC

Contact me by email to see how to establish an LLC business and learn more about the filing fee, which, by the way, is only a one-time expense. Contact me at sam@mollaeilaw.com. That filing fee ensures that your personal assets will be fully protected.  

What Is an LLC Business Maintenance Plan?

You may wonder – “What is an LLC business maintenance plan?” It is my way of saying how to keep your LLC active once it has been established. First, you will need to submit an LLC annual report to the state where you are establishing your company. Not all states require this annual report.  Next, you will need to file your local and state taxes. Besides these “maintenance” requirements, you only need to file an address change if you happen to move. As you can see, this type of business entity is really easy to maintain.  

What Is an LLC Business Formation – How Do You Form an LLC?

Next, you may wonder, “What is an LLC business formation?” or “How do you form an LLC?” Naturally, I am an expert at this part and can help you whisk through the process. You only need to contact me at sam@mollaeilaw.com to get started.   

How to Form an LLC – A Basic Overview

Basically, to form an LLC, you need to do the following.
  1. Choose a name for your LLC business. Check the state’s database to make sure it has not been taken.
  2. Prepare the Articles of Organization, a Certificate of Formation, or Certificate of Formation. (I can help you with the creation of this paperwork. 
  3. Select a registered agent to receive your official LLC mail and correspondence. (I can assist you with this part too.)
  4. File the LLC documentation online or by mail and submit it to the Secretary of State’s office.
  5. Pay the state filing fee.
  6. Wait for approval (this usually takes several business days).

 

After Your Form Your LLC – The Next Part of the Process

The above steps cover the formation of the LLC. After you have formed the LLC, I can assist with the following:
  1. Creating an Operating Agreement for the LLC – this will establish how you will run your LLC business.
  2. Obtaining a Federal Tax ID Number or EIN – this is needed for preparing taxes and establishing a business bank account.
  3. Drafting and submitting an Annual Report.

 

What Is an LLC Business Protection Assurance Plan?

To reiterate, let’s again ask, “What is an LLC Business Protection Assurance Plan?” In answer, this is the LLC business protection you receive when you form this type of entity.  The biggest error new companies make is to not set up a legal entity for their business. If you don’t create a legal entity, such as an LLC, the law will consider your business a sole proprietorship or a partnership – both which can increase your risk of a lawsuit.   

What You Can do When You are a Legal Entity, such as an LLC

To add to the benefits of establishing an LLC, you need to see what you can do by forming this type of entity.
  1. Protect your personal assets
  2. Own property, such as aircraft or real estate
  3. Enter into legal agreements and contracts
  4. Open a business bank account
  5. Sue other businesses 
  6. Pay taxes

 

The Major Disadvantage of Forming an LLC

All the above information gives you a good idea of what you can do when you form an LLC. The major drawback to forming an LLC is that you may have to pay unemployment compensation for yourself, which you would not have to do as a sole proprietor.   

What is an LLC Business – Is It Right for Me?

When you answer the question, “What is an LLC business – Is it right for me?” you will find that the answer is obvious, especially when you see how an LLC can protect your personal assets and add to your professional reputation. Compared to the formation of a partnership or sole proprietorship, an LLC is a little more expensive to operate. However, with that being said, you still won’t face the financial hardship you could if you maintain your business as a sole proprietor or partnership.  

What To Do Next

Are you ready to learn more about this type of entity? If so, feel free to contact me today. I can direct you so you can enhance your professional reputation, protect your personal assets, and pay lower taxes. Contact me now at sam@mollaeilaw.com

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