6 Benefits To Owning a Limited Liability Corporation

6 Benefits To Owning a Limited Liability Corporation

If you are an entrepreneur in the state of Texas, then you do well to start an LLC in Texas. You may not know this, but Texas is one of the most business-friendly states in the country. There are multiple tax incentives offered to businesses as long as the LLC meets certain criteria. Entrepreneurs who are trying to start their own business find that starting up an LLC is the fastest and simplest way to go. There are several benefits to starting an LLC, and once you know what they are, you might be even more interested in starting an LLC yourself.

1. Keep More of Your Earnings

In the state of Texas, when you open up your own LLC, there is no state income tax. This means that more of the revenue that you earn will stay in your pocket. More revenue is a great incentive for starting an LLC.

2. Cheap to Start

Starting an LLC is simpler than most people would think. You do not typically need a lawyer to start an LLC. You can easily create an LLC on your own for free using the form provided by your state. They are also trustworthy companies that can help you set up your LLC at an affordable cost. In order to start an LLC, you have to pay the state registration fee. This fee is $300 dollars in Texas.

3. Your Assets Are Safe

When you open up an LLC, there are limited liabilities that are placed upon you as a business owner. Your personal liability will be separate from your business’ liability and your debts. This means that if a person were to sue your company, they could only go after the income and the revenue of your company, but they could not go after your personal assets. An LLC is great protection for your personal assets.

4. Simple Tax Filing

Limited liability corporations can be taxed in different ways depending on the way that they are structured. Generally, the taxation on the LLC depends on if you operate as a single member or a multi-member LLC. In the state of Texas, it can be quite simple to file taxes for the LLC, and there are several potential tax advantages for LLC owners.

5. Easy to Start

You are able to begin your LLC quickly and simply. In order to start your LLC, there are a few simple steps you must follow. First, choose your business name, and do a complete and state business search. Second, you have to provide an official address for your LLC. Third, you have to assign a registered agent or someone who will receive official correspondence for your business. Fourth, you have to file your Certificate of Formation with the Texas Secretary of State. 

 

All of these steps can be done online. The Texas LLC filing fee is $300. The fifth step is to get an employee identification number from the IRS. The last step is to create an Operating Agreement. These are basically instructions on the way that you are going to run your business.

6. It is Easy To Get Help With Paperwork

If you feel like you are not good at doing all of the filings for your business, then you don’t have to do it yourself. Fortunately, there are known companies that are able to do all of the paperwork for you, so you can begin your LLC with less stress. In this way, you can make sure that all of the steps are done correctly.

Get an LLC

As an entrepreneur, you want to start your business in the best way possible. When you are the owner of an LLC, you have fewer worries on your plate when it comes to liability. Apart from that, you know that you have filed all of your documents correctly. Opening an LLC is not only good for you, but it is also good for the economy. Due to that, the government offers several tax incentives to business owners who are branching out on their own. There has never been a better time to start an LLC, so if you are an entrepreneur, start your business off right.