The Single Member LLC Offers Asset Protection And Other Advantages

« « Tips For Deciding On A Seniors Community And New House | A Chocolate Corporate Gift Basket For The Newcomer In Your Office » »

The Single Member LLC Offers Asset Protection And Other Advantages

Thursday, October 9th, 2008 by www Subscribe To My Feed

The Single Member LLC is now permitted in every state in the United States. There are several advantages for a sole owner to start a single member limited liability company.

1. Personal Liability Protection. The single member limited liability company is the easiest and most effective system for a solo entrepreneur to safeguard his personal assets from business problems. Because of the ease of formation, this can be accomplished without complexity.

2. Tax Benefits. The Internal Revenue Service passed regulations in 1997 that generally allows a single member limited liability company to pick how it wants to be taxed including permitting the business to be taxed as if the limited liability company did not exist. This is a huge advantage because you do not have to subject yourself to tax complexity or double taxation in order to get all the benefits of a single member limited liability company.

3. Ease of Maintenance. The state legislatures recognized the need to not bury the small business owner with onerous and complex operational procedures. So every LLC is easy to run but it is even easier for the single member limited liability company which does not require as many checks and balances. It is advised that you have a single member operating agreement just to evidence the existence of your single member limited liability company which helps preserve your protections.

4. Official Business Vehicle. This age we live in is unfortunately filled with schemes to fool customers. By setting up a single member limited liability company for your business, you make your company stand out because an official legal vehicle such as a limited liability company evidences a more serious business. After all, scam artists avoid state governments and government filings are required to form a single member limited liability company.

A single member limited liability company is fairly straightforward to start but it should be done correctly. There are inexpensive LLC filing services out there such as The LLC Expert.com who can do this for you fast and properly. Also, in order to make sure you do not lose the benefits of a single member llc make sure you have the minimum paperwork in place such as the single member LLC operating agreement and that you always do business officially as your LLC and not as a sole proprietor.

Share and Enjoy: