As an entrepreneur, new business owner, or investor, you understand your market, your customers, and your competition. But for many, the process of picking a business structure is an unfamiliar road to navigate.
The question whether to form an LLC or LLP doesn’t have to be complicated once you understand how these two entities are created, who can create them, and what legal protections and tax benefits they offer.
First, let’s start with the basics. An LLC is a Limited Liability Company. It’s a separate legal entity that protects owners from liability found with the company (similar to a corporation), while also offering the pass-through tax benefits of a sole proprietorship or partnership. The LLC is free of much of the legal requirements and red tape that govern corporations, such as director meetings, shareholder requirements, etc.
To read the full, original article click on this link: The Difference Between LLCs And LLPs
