You can either be tax-advantaged or disadvantaged. That is why you will find it in your interest to focus on the tax advantages of LLC businesses.
Before we extol these benefits, it is helpful to define an LLC and explain why it is a popular business entity.
LLC is short for limited liability company. This type of business entity is a great way to establish a start-up, as it provides several benefits.
These benefits extend to liability protection and savings on taxes.
- LLC Firms Allow Business People to Enjoy More Flexibility
- LLC Companies Include Leasing Assets or Deducting Costs
- LLC Companies Allows for Pass-through Taxation
The IRS defines an LLC as a business structure that falls under the regulations of each state. Therefore, different states may have different rules in place for forming an LLC. The owners of an LLC are called members.
Because most states in the U.S. do not limit ownership,