Creating a Limited Liability Company (LLC) is an appealing option when starting a business of any size. True to its namesake, an LLC provides its members limited liability in several areas.
First, an LLC protects its members’ personal assets from being used to satisfy the business’ debts. This makes LLCs an attractive investment option as well, as investors are not personally liable for the business’ debts either. Next, LLC members are typically sheltered from litigation if the business is sued. Further, more tax deductions are available to LLCs than to any other business structure, including deductions for health insurance, pension plans, and travel, automobile, entertainment, and medical expenses. Lastly, in contrast to corporations, an LLC avoids double taxation because an LLC’s income is included in the personal income tax returns of its members (unless an LLC elects to be taxed as a corporation). Continue reading “Small Business Tips: How to Start an LLC in Colorado”