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What is an LLC?


When starting or expanding a small business, owners are faced with several important decisions. One very important decision is the type of structure their business should become. A significant portion of small businesses begin as sole proprietorships while others start as limited liability corporations (LLCs). Often during expansion, sole proprietorships chose to convert to LLCs. The LLC is a hybrid corporation that reduces the personal risk of its owners or members without requiring them to pay the hefty taxes of a large corporation. The structure has definite benefits but it is not without disadvantages. When choosing the best structure for your business, be sure to make careful considerations about what your business needs. For more information, refer to the following info graphic originally posted on Intuit’s blog.


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