**Establishing Limited Liability Corp****What is a Limited Liability Corporation? by BJ Norman

            A  Limited  Liability Corporation, also know as a LLC, and/or a limited liability company, has become a very popular choice of business structures. Limited Liability Corporations are similar to basic corporation, but have a different tax structure and is mostly considered because as a limited liability corporation it provides you the owner with a person shield of protection, keeping your personal assets safe from lawsuits.

If you are just starting your business, you may be wondering what type of business structure is best suited for you business. The two most important reasons most business owners consider incorporating is to protect themselves from personal liability and to have more control over there money before taxes. Another important reason you may consider a limited liability company is that it allows your business to form business credit options outside of your personal credit.

See Step by Step to Establishing your own Limited Liability Company

Although it is said that up to 90% of all business will fail in the first two year, I personally disagree with those numbers, as it is almost impossible to determine if a business closed due to money matters, or name change, or business structure change and many other reason. So, determining what business structure you choose should not only be based on anticipated thoughts that you business might close. Instead we should focus more on the benefits that a business structure offers.

Business Structures

There are three different business structures we will learn about and each offers different benefits to the business owner. The following will talk about the three business structures.

Corporations

There are two types of Corporations we will talk about. The first type of Corporation is cal the “C” Corporation and this type of business structure basically allows you to be taxed on your revenue and you are then also taxed on any money that you remove from the corporation. The second type of Corporation is the “S” Corporations, which passes the taxes to all the shareholders of the business, and you report information on you personal tax forms.

Here both types of Corporations are classified as a independent entity or structure from a legal aspect. Therefore, the corporations assets is separate from the personal shareholders assets, creating a shield of protection. Therefore, if the business fails your personal assets are safe.
 

Business Partnerships

A business partnership structure is when two people join and go into business together. In this type of structure the partners of the business contribute to the administration of the business according to there agreement. This type of business structure can be very dangerous because it does not provide any type of protection in the event that the business goes belly up. This type of structure makes you responsible for any type of disaster your partner may have created. One partner may created a mess and both partners are deemed liable in a court of law, due the the partnership.


Limited Liability Corporation LLC

We have previously stated that this type of business structure make the business an independent entity. Business can be conducting using your LLC status as owner. A limited liability corporation offers you the opportunity to establish business credit in the name of the Limited Liability Corporation (LLC). As well, there are various tax breaks under this type of business structure.                        Link to Work at Home Programs Reviewed  (shows step by step procedures)

It is very important that you research all the different options offered, and do your homework before deciding on which business entity is best for you. If you’d like to know more about the different tax options offer, you should be sure to contact someone certified in that particular area.

Written by B.J. Norman, administrator of New Works’s work at home jobs and advice at: http://www.newwork-at-home.com This article can be used in it’s entirety as long as all bylines are in place.