If you're thinking about starting your own company, one of your options is to set it up as a limited liability company (LLC). This offers a number of benefits that you may find useful.
For one thing, the company itself does not have to file and pay taxes every year. Instead, money earned is then taxed with your own personal taxes, as the business owner. Therefore, since it passes the obligation on in this way, it's called a "conduit entity." You then pay the taxes by reporting losses and income yourself, keeping things simple.
A big benefit of this that earnings are taxed just once, not multiple times. For example, a typical corporation has to pay income tax. Shareholders are then given dividends, and they have to pay taxes yet again. An LLC means that the government just gets one cut, rather than getting a cut every time the money changes hands. In short, more of the money stays with you or the company.
Finally, an LLC is helpful because only the company is liable. If it gets into financial trouble -- maybe you took out loans that wound up not being affordable -- the lenders generally can't take your personal assets. They can just take company's assets. You may still lose the company, but you help shield yourself and your family from liabilities and debts.
An LLC isn't right for every company, but it is a powerful tool that can be used. Make sure you know all about it and the other types of businesses you can form in Ohio. The more you know, the easier it is to make the right choice.
Source: CBS, "Benefits of Forming an LLC," Ray Martin, accessed Aug. 23, 2017