Many entrepreneurs prefer an LLC due to its numerous advantages. Here are some key reasons:
Limited Liability Protection: Owners, known as members, are not personally liable for the company's debts and liabilities. Pass-Through Taxation: Profits and losses pass through to members and are reported on their personal tax returns, avoiding double taxation. Flexibility: LLCs have fewer compliance requirements and more operational flexibility than corporations. Credibility: Forming an LLC can enhance your business's credibility with customers, suppliers, and potential investors.