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. It can be owned by one or multiple persons. Paying the filing fee and filing the corresponding LLC information documents to your state are the first steps. Asset protection is the main reason why LLC is formulated. Your personal assets is being separated by a wall from your business assets. If worse comes to worst, only your assets of LLC are being attacked, if you are sued, but not your personal assets. So, if you will not form an LLC, your personal assets are also targets. Board of directors are not needed in LLC while corporations do. It doesn’t need to hold board meetings or keep a record of it. 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. There are states in this country that are very good for business as well as for LLC formation. Here is the list of states that are good for LLC formation.
1.Wyoming. And the number one best state to form LLC is Wyoming since it is considered favorable to form any kind of LLC here. Wyoming has learned over the last 12 years that one of the ways to bring any business or any people to them is to create a favorable economic environment. The state developed the giving of tax incentives to those who are always regular with their taxes.
2.Nevada. We all know that the state that doesn’t have a state tax means Nevada is the best state to form LLC. The LLC rules are designed to make sure that business owners would want to stay here for good. Incomes are insulated from the outside attacks in the sphere of LLC. Nevada LLC will not be liable for any of your personal obligations.
3.Delaware. Delaware is an alternative in the corner of the best state to form LLC. The LLC rules in this state are favorable to real estate investors and entrepreneurs. It is insulated and contained; your risk is managed up to the point of what you want to put it at risk. Your personal assets are protected from creditors. This state will make you rethink of your future business plans and consider Delaware your home.
4.Texas. The state of Texas is the best state to form LLC according to most law firms this year. It is an alternate risk management method using the state laws that were passed by the governments. It is designed for the purpose of attracting people to this state.
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.