What are the benefits of starting a business as an LLC instead of a sole proprietorship or partnership?

There are a number of reasons why you might want to consider setting up your business as an LLC rather than a sole proprietorship or partnership. Here are some of the key benefits:

1. Limited liability: As an LLC member, you will have limited liability for the debts and liabilities of the business. This means that your personal assets are protected in the event that the business is unable to pay its debts.
2. Flexible ownership structure: An LLC can have any number of members, which gives you flexibility when it comes to structuring your business. For example, you could have a two-member LLC with each member owning 50% of the business, or a multi-member LLC with each member owning a different percentage.
3. Tax benefits: An LLC can choose to be taxed as an S corporation, which means that the business’s income is passed through to the members and taxed at their individual tax rates. This can result in significant tax savings compared to a C corporation.
4. Simplicity: An LLC is much simpler to set up and maintain than a corporation. There are fewer formalities involved, and you’ll have more flexibility when it comes to decision-making and governance.