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Limited Liability Company (LLC) Tip

Business Law Tip: Limited Liability Company (LLC)

Forming a Limited Liability Company (also known as an LLC) is not mandatory to start your business. There are other cheaper and easier options to choose from. However, if you are serious about your business, forming an LLC should be one of the first tasks on your agenda.

An LLC gives your business the necessary formal structure to succeed, attract investment capital, and also protects your personal assets. It enables you to take risks and think big. An LLC will protect you from personal liabilities. Moreover, with the formal structure of an LLC, it is easier to attract investors and get bank loans. An LLC also has certain tax benefits, like electing “pass-through” taxation.

For a small business that is currently operating as a sole proprietorship or partnership, creating an LLC might be the next big step.

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