Starting a small business can be both an exciting and daunting venture. There are so many aspects of running your own business that you cannot anticipate ahead of time and have to figure out along the way. For this reason, many small business owners choose to start out as basic as possible with a sole proprietorship. Once the business gets its footing however, some business owners start to see the benefits of moving into a limited liability corporation or LLC.
The main reason that many small business owners are drawn to the idea becoming an LLC is that creating this type of business forms a separation between personal assets and business
It is important to note that while LLCs offer a number of benefits to business owners, they do not take things as far as corporations. Unlike corporations, LLCs cannot have shareholders. LLCs are also subject to self-employment taxes; whereas salaries are the only things taxed in corporations. Furthermore, corporations have the ability to offer a variety of employee extras that LLCs do not have the capacity to do. Take this brief quiz to help determine if becoming an LLC is right for your business.