Working for yourself is both rewarding and challenging. You’re in complete control of your business. For some people, a limited liability company (LLC) provides a solution. An LLC can offer a bridge between operating as a sole proprietorship and acting as a corporation for tax purposes. For individuals, a single-member LLC (SMLLC) is a great place to start.
When a business is formed as a single-member LLC, the company becomes its own legal entity. That means its owner (member) is typically not held personally responsible for debts or if legal action is taken against the business.
What Makes a Single-Member LLC Unique?
Pass-Through Federal Taxation on Profits
Easy Startup and upkeep
Before registering your business as an LLC, consider these possible drawbacks:
LLC: The Cons
Limited liability has limits
Consequence of member actions