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Pros and cons of an LLC for your business

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A limited liability company is a simple and inexpensive business structure. As with all business structures there is a wide range of pros and cons which you can expect, if you decide to set up your very own LLC. This is a structure which combines the flexibility and simplicity of a standard partnership, with the liability protection which you can expect from a corporation.

The pros include limited liability – The protection that individuals within the company count on is that whatever happens in the business is the role of the company and will not affect personal lives. This means that any assets are protected should creditors come in to collect from the company. The clear benefit to an LLC is the separation of personal and business affairs.

There is also flexibility of management – An LLC is completely flexible in terms of who manages it, in some cases this will be a joint management conducted by all members of the business, and in others they may elect a single manager to run it. Another clear benefit is the low cost and simple process which is required in order to start an LLC. This is why the LLC is the most common structure and it is accessible for anyone who wishes to get their own business off the ground.

However, the main con is that if you fail to properly separate your business and personal dealings then you may be at risk should things go awry in the business. This process is called piercing the cooperate veil and it is a reminder as to why you should always be clear and obvious in your separation of assets.

In many countries, an LLC will have to be dissolved if any member leaves the company, even if that is because of death. This is not to say that the remaining members are not able to conduct business, even the same business, what they will have to do in such an event is start another LLC. This of course can be a damaging law which means that membership turnover will have to be 0%.

Starting an LLC and hiring the top llc companies brings you a whole lot of benefits as well. The services listed below are seen as the best in the market with reasonable rates, professional packages, and trustworthy registered agent services.

  1. Zen Business

If you’re looking for a business that offers quality registered agent service and helps you deliver a reasonable operating agreement, then you will have found it with ZenBusiness. The company is relatively new compared to other LLC formation services however it’s now being considered as one of the most reliable LLC business formation companies on the planet.

This is all due to the company’s aptitude to deliver and provide great quality services to its buyers. Speaking of great service, ZenBusiness has a dependable customer support team as well that does their best to answer any of your questions and concerns. Probably one of the reasons why the business entity is so popular is because of its budget-friendly prices. They provide 3 payment choices, namely their standard package, pro package, and premium package.

  1. IncFile

If you are looking for a company that excels at LLC formation and incorporation, then you may be interested in IncFile. Founded back in 2004 in Houston, Texas this company has over 15 years of experience when it comes to business formation services. Their customer service is dependable and they have very budget friendly rates as well. Their lowest package, the silver one only charges for the state fee which makes it a good choice if your state charges less for LLCs. The silver package also provides a year of free registered agent services and even a free 30-minute business tax consultation that increases up its value even more. Higher packages provide a lot more like expedited document filing for speedier turnaround and even an employer identification number (EIN) which gives added security.

  1. NorthWest Registered Agent

When it comes to incorporation services, people will need a company they can rely on to take on complicated paperwork so that they don’t have to. Northwest Registered Agent is a great instance of this since it can get things done in every state and it is seen as one of the best rated online LLC formation service currently on the market.

Their website itself speaks volumes on how great they are as an LLC service. They have a map of the United States that lets you to click the specific state that you are in giving you details on how to register per your state.

This LLC service company also offers you free legal documents you can evaluate online so you can study for yourself, which is very suitable.The company also provides a lot of additional services as well like offering you to get an employer identification number, getting a Certificate of Good Standing, Annual Report Filing Service, State Filing Fees, and so many more! To get a more in-depth look into their services and rates, here’s a more thorough review of Northwest Registered Agent.

  1. Inc Authority

Inc Authority is a formation company that provides its LLC formation services for no monetary charges. It’s a little bit odd to think that a company will do this for free considering all the effort it takes to establish an LLC. However, the company’s idea is to help your business startup for free while earning your trust so that you’ll be their customer for life. It’s honestly not a shabby idea and we can see why it’s seen as one of the best LLC formation companies in the market.

You have to take note that you still have to spend some money when availing youreslf of their filing service. This is because you still have to pay the state fee nonetheless, so it’s not like you won’t be spending a single dime with Inc Authority.

One disadvantage to the company is its upselling. Sure, it’s considered as one of the top LLC formation services due to it being free. However, they sell you with constant upgrades and add ons. If you aren’t mindful enough, you may be spending more money than you wish with all of their upgrade choices, so it’s best you watch out for this.

  1. Legal Zoom

LegalZoom is one of the most well-known formations and incorporation services on this list. The reason for that is that it isn’t just fixated on company formation services but also on legal advice as well. LegalZoom provides its customers the opportunity to hire the best lawyers for the job as well as providing them the proper legal knowledge they required to navigate through the tricky world of laws and corporations.

Aside from the extra services, LegalZoom provides amazing company formation service with their affordable prices and 60-day satisfaction guarantee.  They even have subscription packages that dramatically reduce the price of their services.

Being a big company, their agent service isn’t entirely great all of the time. Some customers complain about lazy and unpredictable agents while others rate their agents 5 stars for their quality service. So keep this in mind when taking on the services of LegalZoom.

Conclusion

Forming an LLC will provide you with a lot of benefits, but you need to be aware of the downsides and handle them. You’ll have advantages such as tax benefits, avoiding personal liability and debts of the business, as well as saving you from legal issues such as being sued.

This is all very attractive, however, forming an LLC can be complex and time-consuming with all the paperwork and bureaucracy. Having a company that concentrates in LLC formations can save you a lot of trouble since you’ll have to tackle a lot of things like operating agreements, getting a federal tax id number, articles of organization, and so many more!

 

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