New Business After a New Idea: Considering LLC
It is a business structure created by state law, an entity, limited liability company. Real state investments, vehicles, boats, and aircrafts are assets that LLC can hold it and run it like a business. Either it is owned by one or more individuals. Make sure to file the correct LLC information documents before making the pay for the filing fee in your state. If you want your assets to be protected, forming a LLC is the best solution. Your personal assets is being separated by a wall from your business assets. If worse comes to worst, only your assets of LLC are being attacked, if you are sued, but not your personal assets. You have to consider that without LLC, your personal assets are going to be prey for by creditors. One benefit of forming a LLC, is you don’t need a board of directors. It doesn’t need to hold board meetings or keep a record of it. There is no double taxation in LLC. All the properties are distributed however the owner wants it. LLC is the most flexible structure for businessmen, even real estate owners. Each state has their own requirements for forming an LLC. There are states in this country that are very good for business as well as for LLC formation. Here is the list of states that are good for LLC formation.
1.Wyoming. Forming an LLC in a favorable state means doing Wyoming because it is considered as the best state to form LLC. Wyoming has learned over the last 12 years that one of the ways to bring any business or any people to them is to create a favorable economic environment. One of the ways to do that is to reduce taxes or give tax incentives.
2.Nevada. We all know that the state that doesn’t have a state tax means Nevada is the best state to form LLC. The LLC rules are designed to make sure that business owners would want to stay here for good. It allows the LLC to be there and not be penetrated and have the income inside of it insulated from outside attack. Nevada LLC will not be liable for any of your personal obligations.
3.Delaware. Delaware is an alternative in the corner of the best state to form LLC. The rules of LLC in Delaware are tremendously favorable to all business owners, even big investors. The LLC insulation protects the business assets and protects it from large risks. And the rest of your assets are not affected. This state will make consider staying here for good.
4.Texas. The last but not the least, Texas, another best state to form LLC. You can have holdings that are themselves exempted under state exemption law from being executed, levied on. It is designed for the purpose of attracting people to this state.
Some experts would add Kansas as one of the best state to form LLC.
LLC was created to give proper asset protection from both your business and personal assets, minimize the bad results of mismanagement, et cetera.