Everyone knows that a limited liability company, or LLC, offers benefits to the owners that protect them from personal liability, in the event the business incurs more debt than it can afford to pay.
In fact, this is the primary reason why many business owners seek to create an LLC. They want to protect their family's personal wealth and assets. However, there are some other benefits that come with an LLC that you might not have known.
The other potential benefits associated with an LLC include:
- An LLC can have over 75 business owners.
- An LLC can have a nonresident alien as one of the owners.
- An LLC can list a partnership or corporation as one of the owners.
- Over 80 percent of the LLC's ownership can rest with a separate corporation.
- An LLC can offer an ownership structure that is different from the actual investment of the owner in the business.
- Owners and members of the LLC can play an active management role while still retaining their personal liability protections.
The creation of an LLC needs to be done carefully and in a legally organized fashion to ensure that the liability protections and other benefits of an LLC are retained. Also, business owners and would-be business owners should fully examine all of the business models that are available to them before they settle on the creation of an LLC. After all, they want to ensure that it's the best model to suit their needs.
If you have questions about business formation, visit our website to learn more about this important area of the law.