Many individuals who decide to set up a limited liability company (LLC) in Virginia do so because it’s relatively simple, it affords liability protection to the owners and because it offers many tax advantages.
Ease of setup
The paperwork that an individual looking to set up an LLC must complete is relatively minimal. The setup fees to establish one can be nominal as well. Since it’s a pretty straightforward process, many prospective business owners would be safe attempting to set it up on their own. It’s best to have an attorney handle that for you, though, so that you’ll know that it’s done right and understand your annual obligations.
Choosing who’s at the helm
One great thing about LLCs is who can manage it. It can be run by the owners themselves or managers that they hire can run its daily operations. This can prove to be advantageous if a Lynchburg LLC owner has great ideas, yet very little business acumen. They can put someone at the helm who does.
What attracts many business owners to set up an LLC is the fact that it limits their liability for any actions that the company’s leadership takes. This means that creditors who are looking to collect on debts can’t take an owner’s personal car, investments, home or bank account. These items remain off-limits to creditors so long as the owners don’t intermix their finances with any of the company’s.
Generally, an LLC’s profits are transferred directly to members, something that means that they’re taxed at a personal income tax rate instead of a corporate one. This can prove beneficial if your LLC loses money too. If it does, then your losses can be deducted on your personal income tax return.
One of the first steps to getting a business venture off the ground is for you to incorporate. No one entity is right for every type of organization or operation. There are pros and cons associated with all of them. If you’re having a hard time deciding what business structure is right for your venture, then an attorney can advise you which is.