5 reasons you should register your business as a Limited Liability Company (LLC)

Registering your business as an LLC offers several benefits. In addition, this type of business limits the owner’s liability and offers tax benefits. Nevertheless, before your business is registered as an LLC, there are several processes you must comply with. LLC registration process is almost the same in most states but may differ a little.

One of the advantages of registering an LLC is the flexibility it offers. Besides, investors seem to take LLC businesses more seriously than others. Read more information about the benefits of registering your business as an LLC.

Protects personal interest

The major benefit of an LLC is that it protects your personal assets from that of the company. In other words, if your business is being sued, only the company will bear the liability, not your personal assets. However, if you sign a guarantee for the business financing, you may be liable if the business defaults.

Inexpensive and can be formed easily

The process of creating an LLC is not as difficult as it seems. Your jurisdiction determines the process of creating an LLC. In almost all states, creating an LLC doesn’t cost more than $1,000. LLC is less expensive compared to a corporation. Forming an LLC is the best way to make your small business attractive. Registering an LLC is straightforward and requires just a little time.

Flexible taxation

The tax regime with an LLC is flexible and less cumbersome. The stress you would experience with corporations is not the same as the LLC. For instance, you can pass your profits through your personal income account in some states.


LLC provides you with more privacy compared to a corporation or partnership. Owners of an LLC company can choose to remain anonymous because of their lifestyle. You may barely get this type of privilege for a partnership with a corporation. Nevertheless, the individual’s privacy depends on the jurisdiction where the company is registered.


If you want investors to take your business seriously, register an LLC. With an LLC, you can handle certain deals and get partnerships with top investors. Also, the LLC allows you to open a business account with your company’s name. Meanwhile, LLC organizations can access loans and other facilities faster.

Distribution flexibility

Registering an LLC business allows you to determine how to share your profits. Meanwhile, in general partnership, this privilege may not be available. The terms and conditions of forming the LLC business often determine how the business’s profit will be shared. Ordinarily, the member of the LLC that invests more is supposed to enjoy a larger part of the profits.


Creating an LLC looks like a daunting task for some people. You can contact an agent to help you create an LLC business if you don’t have time. Remember that requirements to form an LLC business for various states differ. Finally, LLC is the best way to upgrade your small business and enjoy patronage from big investors.