The Limitied Liability Company (LLC) is a relatively new type of business entity offering several advantages over more traditional business structures and has quickly become the business structure of choice for most new businesses.
There are several good reasons to structure your business as an LLC, including:
Flexibility: a limited liability company combines the best features of traditional small business structures such as sole proprietorships and partnerships with the ability to do everything a corporation can do, minus the formalities.
Liability protection: for purposes of liability, the LLC acts much like a corporation. It can help you to effectively separate your business assets, and insulate your personal assets from the risks associated with doing business in today’s marketplace.
Simple taxation: despite its corporation-like features, an LLC is typically taxed in the same way as a sole proprietorship or partnership, allowing profits and losses to be added to your personal tax returns instead of having to file separate individual and business ones. A LLC could also be taxed as a corporation, however, if that would yield the greatest benefit for you. This is a demonstration of just how flexible an LLC really is. This is one of the reasons why so many people who are starting a small business choose to create an LLC.
Ease-of-use: unlike corporations, LLC’s are easy to manage and do not require much in the way of formalities. For example, while minutes are kept for meetings, there is no need for a board of directors, shareholder representatives or officers in an LLC. Also, one member (one owner) LLC’s are allowed in Missouri, as a great alternative to the traditional proprietorship which does not provide for any separation or asset protection of your personal property.