What Do You Get From an LLC?

By dhinternational  /  June 10, 2011 / Comments Off on What Do You Get From an LLC?
What Do You Get From an LLC?

What Do You Get From an LLC?

You may not be fully aware that when you invest in tax liens, there are risks that will always be involved. As an investor, you will have to secure your other assets and to do this, you can create an LLC or a Limited Liability Company. With an LLC and having your tax lien business placed under this, your assets will be protected.

So what do you get from an LLC?

1.) As a member of an LLC, you will have a limited liability protection on your assets. This explains that they are not accountable personally in case of debts or liabilities. The members’ personal assets are not included in the LLC so these cannot be sequestered when problems do arise.
2.) Unlike other business organizations, LLCs need not pay taxes.
3.) When you are part of an LLC, it will show that you are a serious investor. Your credibility as a business person is higher compared to others who are not part of LLCs.
4.) Since LLCs have lesser requirements for compliance compared to a corporation or sole business, creating an LLC is undoubtedly faster.
5.) LLCs have fewer requirements in reporting.
6.) While the number of members in corporations is controlled, LLCs are not as they are more flexible in organization.

While there may be a couple of things that make you realize that LLCs are indeed necessary, you will also have to consider the following things:
1.) When you form an LLC, you will have to consider the expenses involved such as initial fees. Other states may need annual reporting fees.
2.) There are mandatory reports that need to be filed yearly when you are part of an LLC.
3.) When transferring ownership for LLCs, it is not an easy task.
4.) You will have to know the rules and regulations in forming LLCs in your specific state as it may differ from others. This will surely help you avoid wasting your money and effort.

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