Three Things to Know when Incorporating or Forming an L.L.C.

This article was written to help guide potential businessmodern times, however, owners are choosing to go
owners through the process of incorporation.with the more flexible L.L.C. The L.L.C. (i.e. "Limited
Specifically, the author discusses his three mostLiability Company") shares a corporation's aspect of
important aspects of incorporating or forming an LLClimited liability in that the business owners are not held
1. Pick the right formation type.liable for the company's debts and losses, but also has
The first thing you must consider before youmany aspects that are not shared by a corporation.
incorporate or form an LLC (Limited Liability Company)Though this article's short nature limits the amount of
is which type of formation would be optimal for yourdetail that can be discussed regarding each particular
particular business/industry. For example, businessadvantage, it should suffice to say that most business
owners traditionally used to go with a "corporation" dueowners would benefit more greatly from the L.L.C.
to its familiarity and (although sometimes complex) taxformation than from any other type. (If you'd like more
advantages over other formation types. More often indetailed information, go to (Advantages of an LLC).