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How Does Creating Your Own LLC Helps?
Creating your own LLC has benefits even if you work alone. Liability defense is the main benefit. Depending on how you file, there might or might not be tax benefits. Let us walk you through some of the benefits you can gain by opting for LLC creation services.
- Limited Liability: Forming an LLC may help to protect your assets. If anyone sues your company, it is the company that fails, not you. This way you can protect yourself if you go for an LLC creation services provider. Unless you designate personal assets as security, these assets are what they can keep if your company goes bankrupt or loses a court case.
- Federal Taxes: You have the option of filing taxes as a corporation or as a “disregarded entity.” Pass-through taxes are due if you file as a “disregarded entity.” This implies that you must pay self-employment taxes and file your business revenue together with your personal taxes. Your business files as a separate entity from your taxes if you file as a corporation. Discussing which choice might be best for you with your accountant will be beneficial.