New Business After a New Idea: Considering LLC
It is a business structure created by state law, an entity, limited liability company. Real state investments, vehicles, boats, and aircrafts are assets that LLC can hold it and run it like a business. Either it is owned by one or more individuals. It is started by filing LLC information documents and pay the filing fee in your state. Asset protection is the main reason why LLC is formulated. It is comparison to a wall between your personal assets and business assets. If worse comes to worst, only your assets of LLC are being attacked, if you are sued, but not your personal assets. You have to consider that without LLC, your personal assets are going to be prey for by creditors. This is one of the benefits when forming a LLC, board of directors are not needed compared to corporations. Say no more to holding board meetings in LLC. Double taxation is not applicable in LLC. However the owner decides, the properties are distributed accordingly. LLC is the most flexible structure for businessmen, even real estate owners. LLC requirements are based on the state you are in. Not all of the states in this country are suitable for business, but there are those which are best not just for business but for LLC too. So what are these states?
1.Wyoming. Wyoming is considered the best state to form LLC according to most LLC lawyers and experts. Wyoming developed a most favorable environment for doing business, recruiting people, and making the economic ambience set to the right designation. One of the ways to do that is to reduce taxes or give tax incentives.
2.Nevada. Nevada is the best state to form LLC since it doesn’t even have a state tax. The LLC rules are favorable in this environment. The LLC-generated income are insulated from the attack from the outside. And the liabilities outside of the company that might attack your members that could adversely affect the entity in which they’re a holder in.
3.Delaware. Delaware is another option for best state to form LLC. The LLC rules in this state are favorable to real estate investors and entrepreneurs. Your business assets in this state are firmly protected from different risks and financial attacks. Your personal assets are protected from creditors. It’s going to encourage you to invest.
4.Texas. The last but not the least, Texas, another best state to form LLC. You can have holdings that are themselves exempted under state exemption law from being executed, levied on. This state banked on these strategies to help them resolve supply and demand of businesses as well as proper asset protection.
To add, Kansas is also considered as the best state to form LLC.
LLC is designed to protect your assets, reduce the risk of mismanagement, and develop your success.