The LLC Advantage

An LLC (limited liability company) has a powerful legal advantage over a traditional corporation. It also has a significant tax advantage, too.

When you operate through a corporation or an LLC, you receive some personal protections under the law. If the business can’t pay its bills, you are not held liable for those debts, unless you agreed to personally guarantee them. If the business is sued, you are also protected, unless you have used the business to commit a crime.

But what if you need to protect the business from your personal life? Is the reverse true?

No. Legally, LLCs receive different asset protection under LLC law than corporations do. If you are sued personally, and you can’t pay your judgment or debts, your shares in a corporation can be seized by a creditor. Your shares represent your ownership in the corporation. It’s like a creditor just took control of your business, right out from under you! Once that creditor has control of your shares, he or she can vote to liquidate assets, sell the corporation … whatever it takes to settle your debts … and you have NO control.

On the other hand, your ownership in an LLC is protected by LLC law. A creditor can’t simply take over your interests in an LLC the way he or she can take over control of your shares. With LLC ownership, a creditor has very limited access to the LLC’s profits, and, in many states no access to its assets. Even in the states where it possible for a creditor to gain control of an LLC’s assets, there is a lengthy court battle to get through, first.

From a tax perspective, LLCs win over corporations, too. An LLC, unlike ANY other US company, has the ability to tell the IRS how it wishes to be taxed. An LLC can choose to be taxed as a:

  • C Corporation
  • S Corporation
  • Partnership
  • Schedule C

LLCs can make this election simply by filling out a 1-page form and faxing it into the IRS. You don’t have to wait for IRS approval before starting, either. You can make the election and begin doing business the same day.

There are also no ownership restrictions on LLCs in the United States. LLCs can be owned by individuals or other businesses, and owners may be located anywhere in the world.

We’ve also created our shelf company LLCs with the most optimum LLC management strategy. Our LLCs have been created specifically with growth in mind. You can bring in investors without giving up control over daily operations.

With this kind of flexibility, a shelf company LLC makes an ideal business structure. Fast, flexible, and powerful – why would you use anything else?

Any questions? Call us at 1-888-250-2630 or drop an email to info@legalshelfcompany.com and we’ll help you get started with your own Nevada Shelf Company LLC today.