Starting a new small business comes with a lot of work. Figuring how to approach this new business venture will require a lot of focus and effort. One of the most important decisions you will make about your new business is how to structure it. Whether trying to file an LLC or incorporating your business, getting some help from tax professionals is a great idea. The following are some of the reasons why becoming a limited liability corporation is a good idea for startup business ventures.
Avoid Double Taxation
If you are starting a larger business with many employees, you will need to file LLC in order to avoid being taxed twice. When choosing to create a C-Corp business, you and your business will be taxed separately by the IRS. By filing as an LLC, you will be taxed like any other business owner who claims a sole proprietorship. In the future, you will be able to change your LLC to a corporation if you think it will benefit you and your shareholders. Before making a decision regarding how your business is structured, you will need to speak with a tax professional to ensure you are doing the right thing.
Protecting Your Personal Assets is Easy with an LLC
For most business owners, the main reason to file LLC is due to the protection it gives them. If your business is sued or goes bankrupt, you will be able to keep your personal property off of the table. Later on, you will be able to change the way you have your business structured if you take on additional shareholders. Plotting out these types of changes is a great way to avoid getting in over your head.
The team at Uncle Phil’s Tax Advice will be able to help you make tax related decisions regarding your business. Call (855)829-8477 or visit their website for more information. You can connect with them on Facebook for more information!