Limited Liability Companies ( Llc )

1687 Words Jul 20th, 2015 7 Pages
Limited liability companies (LLC) in my opinion would be the best way to go to start up a business. With the ability of choosing which regime of taxation the business will identify with, protection from liability for the debts accrued by the business, no double taxation on business and member, and having the business counted as a separate entity, LLCs enjoy many of the benefits that corporations do, while being counted as a default partnership where new LLC laws do not cover an issue. Opening a restaurant as an LLC is ideal because of the lesser amount of paperwork that has to be done, and the ability to have numerous members, permitting LLCs to exercise more efficiency which saves time advertisement startup capital per member. While LLCs have their drawbacks, like not being recognized as a viable business structure in the entirety of the United States (as well as the members of the LLC possibly having to personally guarantee small business loans if the business has no credit rating), the benefits outweigh the detriments, allowing a small business to stay agile and responsive to market fluctuations in an ever changing business world. Sole proprietorship, partnership, and corporation business models have their own charm, but LLC is likely best for a small company just spreading its wings. According to the United States Small Business Administration (SBA), to start up a small business as an LLC in California, one must first choose a business name. The name must fulfill three…
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