Having an LLC has many advantages attached to it. Well, other business entities do have their advantages but when it comes to small businesses, you will be better off with a limited liability company. There is a lot to be said in respect to this ownership type. Here are some of the wonderful benefits of LLC.
The first one is the beauty of having a lot less paperwork. This then gives you the time to make sure that paperwork is done without rushing and therefore done neatly. The question would be, why is the paperwork reduced? Because LLC doesn’t have a whole board of directors or a ton of shareholders who will keep attending company related meetings or even an annual meeting. No one likes to handle paperwork so this is a good thing and it will save you a lot of time. The only paperwork you might have to deal with is very little because records about the running of the company have to be kept.
The distribution of profits is flexible. In other partnerships, distribution depends solely on the ownership of the company which is not usually equal, this then makes decision making difficult because it all depends on what the shareholders decide. When it comes to an LLC partnership, the distribution of profits is done is such a way that everybody wins and decisions are made by the owners of the businesses.
Another wonderful benefit is that the LLC is not crazy about titles and large show of ownership. There is no need for hierarchies and everyone who works here usually knows what to do when there is a problem to solve. The usual management structure we know and sometimes love is not necessary in LLC. The owners can have the titles they see fit and can address any issues that are affecting the company directly. It is so much easier for the owners to run the business and basically all that is vital in the LLC is the day to day running of the company.
Another important benefit to take note of is the tax advantage that comes along by being in this category. There is no tax classification known for the LLC, therefore LLC can make use of any the other tax status to make tax returns and updates as the owner sees fit. Tax returns are a lot easier in this ownership type. Basically, there are no LLC taxes or any that can be linked to corporations. Tax returns and the way to make sure the same is done well is by being in this category and of course this is the best way to reduce paperwork. This is the best category when it comes to tax returns as none is evaded and yet the owner is not bogged down with tiring tax processes or heavy paperwork.