How to form a LLC (limited Liability Company)

Like a regular corporation, a Limited Liability Company (LLC) protects the business owner's assets, should the business run into trouble. If the business gets sued, falls into poor standing with its creditors or winds up in bankruptcy court, the assets and property of its owners cannot be taken away. Traditionally, the owners of a corporation are known as "partners" or "shareholders," subject to that particular tax bracket. However, LLC owners simply become "members" of the corporate entity, which allows them to choose whether they want to be taxed as a corporation or as an LLC. Unlike corporations, which require a list of formalities and requirements to maintain its standing, an LLC does not require a recording of minutes, bylaws or meetings to maintain its status.

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