Owning and operating a business of your own is a goal shared by many Albuquerque, New Mexico, residents. It is a rewarding endeavor, especially when what began as an idea becomes a thriving enterprise.
Among the many business law decisions you must make as a member of the commercial community is deciding how to structure your company. Some of the available choices include a partnership, a corporation or a limited liability company, also known as an LLC.
Most of those looking to enter the commercial world choose the LLC structure. The LLC advantages discussed below may explain why so many people elect this business entity structure rather than a corporation or other business entity.
- Protection: An LLC protects your nonbusiness assets if you experience company-related financial problems. This means a reduced risk of losing your car or your home if you get in trouble.
- Simplicity: Depending on your business structure, there are a few or a lot of administrative procedures you must complete before opening. An LLC, however, has less red tape to deal with before you can start operating.
- Tax benefits: Most LLC owners typically pay fewer taxes than would be necessary with other business structures. For example, LLCs do not experience the “double taxation” pitfalls inherent in corporations.
- Size: Most believe that an LLC is only for small businesses. You might be surprised to learn that some of the nation’s largest companies are structured as an LLC. For example, Amazon is a corporation, but some areas of the company operate under the LLC structure.
If you are trying to select the right structure for your company, consider seeking counsel from a firm familiar with New Mexico business law. The insight a business lawyer offers can help you make decisions that will improve the success and longevity of your company.