“Why You Should Consider Using an LLC for Your New Business”

– LLCs protect personal assets of owners from business debts
– LLC owners (members) generally aren’t liable for business debts except to the extent of their investment
– LLCs can be treated as partnerships for federal tax purposes, with earnings flowing through to owners and taxed only once 1. Businesses with qualified business income may be eligible for the Section 199A pass-through deduction, with certain limitations, until 2025 unless extended by Congress.
2. Active business managers can deduct their share of any business losses on their individual tax returns to offset other income.
3. LLCs taxed as partnerships can allocate tax benefits to specific partners, making them a favorable option over S corporations.
4. LLCs provide creditor protection and partnership taxation benefits, making them a potentially advantageous business structure.

The Advantages of Using an LLC for Your Small Business