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The Falcone Center for Entrepreneurship at Syracuse University

Tuesday, April 25, 2006

Article: The Limited Liability Company: The Importance of Choosing The Correct Business Vehicles

When considering the form that a business should take, many people are confused by the choices. Should the business be a sole proprietorship, a corporation, a limited liability company, or what? In this article, Sarah Spear talks about the Limited Liability Company and its advantages (as well as its limitations. In the introduction, she writes:

One of the most recent entities to emerge, the Limited Liability Company (“LLC”), has been the increasing choice of many business owners and an advantageous tool for estate planners. For most businesses, the LLC provides a hybrid of the pass-through tax benefits of a partnership and the limited liability of a corporation. Many entrepreneurs are not aware of the flexibility provided by an LLC and those who incorporate online default to a corporation because the entity is more familiar. Websites do not apprise the owners of the strict guidelines and laws that govern corporations. In some instances, failure to comply results in the liability shield stripped from a corporation, making the owners personally liable.

This paper will begin by distinguishing the LLC from other common forms of business entity, discussing the various LLC management structures, highlighting businesses thriving as LLCs, and pointing out some of the tax advantages realized by the LLC. The paper will conclude with a discussion of the LLC as an advantageous estate planning tool.

This is a detailed, yet easy to understand article. Anyone considering forming a business -- or changing how an existing business is organized -- would benefit from reading this.


Anonymous Anonymous said...

Should the business be a sole proprietorship, a corporation, a limited liability company, or what?
I guess limited liability is the best variant.

10:25 AM  

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