Many people are becoming entrepreneurs every day. Whether you are a restaurant owner, finance coach, IT Technician, doctor, insurer, or all the above; there is no doubt that the world is encountering entrepreneurship at a high rate of speed that is not slowing down anytime soon.

Creating a company or companies is all well and dandy, however being a legitimate company/companies and knowing which entity to choose from is what really matters. Protecting your business as an entrepreneur is the best way to go and you have landed in the right spot for guidance. Below are PROs and CONs of an LLC that entrepreneurs or business owners should know.

LLC – Known as a “Limited Liability Company”

PROs

• There can be multiple owners who are known as members when filing with the secretary of state. Most LLCs are managed by their members and in some states do not require tight knit record keeping leaving minimum paperwork to do when it comes to annual reporting. Bottom line ~ Just because you are a member does not mean you are running the show!

• LLCs are usually small in size, but there are some big ones, and I believe it’s safe to say when it comes to choosing who you want as members LLC is a better choice than some of the other entities. There is no maximum number of members.

• Members may include individuals, corporations, other LLCs, and foreign entities.

• Owners are not responsible for business duties.

CONs

• When trying to open a bank account under your LLC be prepared for every manager on your states filing to be at the bank. It is a come one come all for many states.

• We love our children and the thoughts of “they are my little heirs,” but you may need to hold your horses adding those little darlings as members to your LLCs especially at a young age because the bank is going to be looking for them when trying to open an account. Then right behind the bank will be Uncle Sam when it comes to taxation. Bottom Line: Pass the flames down to your children instead of teaching them to play with fire at an early age, but of course it’s up to you.

• All members must hold a percentage in the business, so therefore be prepared to calculate their interest.

• There can only be one LLC operating under a name in the same state. In some states, an LLC must be dissolved if a member dies, leaves, or files for bankruptcy.

• Investors usually don’t invest in LLCs

• LLCs are usually taxed as a sole proprietor or a partnership.

• Most LLCs function like a partnership and may not have titles, however when applying for a business loan or grant most banks, or lenders want information from all members. “Bottom Line don’t expect for a member to apply for a grant without having all members financial records and documents at hand because it may be a no go!”

APPLY HERE FOR YOUR LLC TODAY!