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When Should You Choose An LLC?

by Team Techvilly

I’m a big fan of the limited liability company (LLC) for many reasons. In this article, we’ll explore why you might want to choose an LLC for your business and which situations make it ideal.

Here are vital reasons when you consider LLC formation.

When You Want To Protect Your Personal Assets

If you want to protect your personal assets, an LLC is a better choice than a corporation or sole proprietorship.

A corporation is a legal entity created by an act of law and governed by its own internal rules. It has limited liability and it can be dissolved at any time (unless there’s something wrong with the state where it was formed).

A sole proprietorship is completely owned by one person who may also run it as an LLP or PLLC.

Partnerships are different—they allow multiple people to share ownership in the company but each partner has only limited control over what happens within the partnership itself; this means that if one of these partners doesn’t want something done, then they can use their veto power to prevent its completion or implementation altogether!

When You Need To Make A Good Impression On Clients

When you’re looking for clients, an LLC can be the best option.

You’ll show that you have a professional business and are serious about it. This will make your clients feel more comfortable working with you, which can help them decide whether or not they want to work with your company in the future.

When You’re Looking For More Flexibility Than A Corporation

An LLC is a great option if you want more flexibility in your business than a corporation would provide.

For example, an LLC can be formed by just two people who are not related to each other, whereas corporations must have at least one shareholder.

In addition to that, there are several other reasons why an LLC might be better for your needs:

It’s easier to form an LLC than it is with a corporation or partnership because all you need is two people—and they don’t even have to be related!

You can also choose whether or not your business will be taxed as “passive” income (which means no tax liability) or active income (with taxes). This can make things easier when determining what kind of structure would work best for your company’s finances and goals moving forward into the future. 

However there are some downsides as well – especially when dealing with issues like estate planning or succession planning after death occurs unexpectedly due to its nature as being a separate entity from its members’ families.”

When You Have Multiple People Involved In The Business

When you have multiple people involved in the business, you can choose how much power each person has. You can also choose how much money each person can take from the company and invest in it.

The LLC will be more flexible than a corporation because it doesn’t require any filing with the government to operate as an LLC—just certain documents like minutes of meetings, goals and budgets are required by law.

You might want to consider choosing an LLC if:

  • Your project will involve multiple people or companies working together on different projects (e.g., consulting firms).
  • You want total flexibility over how much money goes toward operating costs versus profit for each member of your team (e.g., freelancers).

Sometimes, an LLC is the best choice for a business. There are several reasons why you might choose an LLC for your business.

  • More flexibility than corporations. An LLC can offer more flexibility than a corporation because it’s easier to create new members, change the name of the company and dissolve it at any time.
  • Protection against liability claims from former partners or employees who leave before the end of their contracts (known as “breakup fees”). In addition to being more flexible than corporations, LLCs also provide better protection from lawsuits filed by former partners and employees with claims related to their work on behalf of the company—even if they were fired without cause or quit without notice!


Choosing an LLC for your business is an important decision, but we think you’re going to love the benefits you get from this form of entity. Even if you don’t choose that option today, it might be worth taking a look at the advantages of filing as an LLC in the future.

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