In this type of business venture, there are like all others, the advantages and disadvantages. However, I'm going to discuss those in the next few days of updates. For now, let us concentrate exactly on what a limited liability company stands for.
Although a LLC is not in any way, shape, or form a corporation or partnership type of business, it does take a few characteristics from both.
Now in a corporation type of business, usually they give out shares to generate some type of income for start-up of their business. As well as partnerships normally contain two separate owners, or partners, in the business. A LLC type of business is a little different however.
They classify their owners as "members" instead of partners or shareholders. Also the amount of members, or owners, is not limited in a LLC business. This can be a huge advantage or a huge disadvantage depending on how you play your cards.
One of the main purposes of opening a LLC business however is to limit the amount of risk an owner takes when starting a business. Filing taxes with an LLC however can be a little bit more tricky than your average sole proprietorship tax filings.
In a few days I will post, both, the advantages and disadvantages of owning a LLC type of business.