A limited liability company (LLC) is a type of business entity that’s popular for small business owners who want to create a legal separation between their business and personal assets. However, a C corporation is often a better option for startup founders.
An LLC, or Limited Liability Company, is a popular business structure that combines the flexibility of a partnership with the liability protection of a corporation. As a small business owner, forming an LLC allows you to protect your personal assets from business debts and legal obligations, while enjoying tax advantages and simplified operational requirements. By establishing an LLC, you can separate your personal and business finances, reduce personal liability, and gain credibility with customers and partners. Forming an LLC typically involves filing the necessary paperwork with the state, outlining the company's structure, management, and ownership. Understanding the benefits and requirements of an LLC can help you make informed decisions about structuring and protecting your business.