| Wyoming enacted the first LLC legislation in 1977. Other states followed with legislation but LLCs were not widely known and accepted until the IRS finally ruled on the LLCs tax status in 1988. They are now one of the most popular business forms. In many states the number of newly formed LLCs exceeds the number of corporations formed in a year. The Limited Liability Company is available in 50 states and is the fastest growing business form in the United States. It is a separate, distinct, legal entity as is a Corporation, a General Partnership or Sole Proprietorship. |
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The LLC provides, the opportunity for tax benefits, requires less paper work, is less expensive than a Corporation to set up and it has better business asset protection against the claims of personal creditors.
In order to determine the right business form for you it is necessary to understand the choices available and how they will impact your financial success. Important factors to consider are how easily or difficult it is to set up the form, the tax consequences, and possibly the most important factor, personal liability.
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