Why form an LLC? So you can adapt like a chameleon to the IRS

LLC vs Corporation S…

I wish I could JUST have both!

I can?

What your accountant is too busy to tell you at tax time is that you form as an LLC and pay taxes like a corporation! The biggest complaint I hear every day is, “well, this person REALLY recommended that I form a corporation.” Well, that “person” usually never has a name, and that argument never makes sense.

An LLC is structured to protect you like a corporation, same deductions as a corporation, no pointless state-enforced annual meetings, no shareholders required to participate in decisions (LLCs are percentage owned as outlined in the operating agreement ) and less paperwork than a corporation. Man, I’m getting nervous just telling you how easy it is.

So why do people still form corporations?

If you’re in a situation where you’re looking to raise money for a business venture, then yes, a corporation protects your money man (sorry feminists, but it always IS a man) by allowing him to own stock and have a say in the daily business activities…

PROTECTIONS LLC

You never know when someone will come out of nowhere and try to sue you. People today sue for the strangest reasons and, yes, sometimes they win. So how is an LLC going to help protect me?

If you run your business from your LLC and the only business assets are your car and office equipment, then the person trying to sue you only has so much to go after.

FOR EXAMPLE: If a landlord has a tenant who slips and falls one morning because the driveway wasn’t shoveled after a snowfall (this is one of the most common cases), then the only assets they can look for are those that are in the LLC. Personal assets such as your home, personal savings accounts, stocks, etc. are protected by the LLC shield.

What happens if I owe more than my LLC is worth? Well, if you file for bankruptcy, it is only the LLC that files, NOT YOU! This is why Donald Trump’s companies have filed for bankruptcy before but he personally has never filed for bankruptcy (why you think he still has everything)

So if I haven’t convinced you yet, you must have a fairly capable person financing you because there is no other reason why you should join.