As an aspiring business owner, the first thing you must do is decide what structure your business will have. Each structure comes with its own unique benefits and potential downsides. You must consider each carefully as you make your decision.
An LLC is one of the most common structures, though. It offers ample benefit and drawbacks that most people might consider worth the trouble. But what are they, exactly?
The benefits of LLCs
Forbes takes a look into LLCs, including who LLCs benefit the most along with their pros and cons. LLCs combine the advantages that many other structures have. Of course, the most well-known one is the protection that an LLC provides you in terms of your personal assets. In other words, if your business goes bankrupt, you do not have to worry about your personal finances suffering. They are separate and will remain as such.
It also has greater versatility than many other business structures. You do not need annual meetings. You do not have to follow administrative requirements. You do not need to maintain a board of directors, and you do not need shareholder meetings. You can organize however you want and decide the operations of the business according to your wishes.
Preparing for fees
However, there are many associated fees with LLCs. It gets registered at state level, which means you must pay these fees annually. They can range anywhere from $10 to over $800 depending on the state you live in, which is a big expense for some.
But if you decide to make the investment, you might find the benefits well worth the cost. Consider consulting with legal help for more opinions on the matter.