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When choosing a small business structure, many owners go for a limited liability company (LLC) because of the protection from liabilities it provides. If you’ve thought about starting an LLC, follow this guide for step-by-step information.
What is a limited liability company?
LLCs are a type of business entity that are similar to corporations in many ways. As the name suggests, LLCs provide personal liability protection to their owners. They also boast a lot of flexibility in management, taxation, and the allocation of profits and losses.
As a company, an LLC can own assets and bank accounts; sign leases, loans, and other contracts; and file a lawsuit or be sued. Since it’s legally a separate entity from its owners, no one person is liable for business obligations or debts.
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A step-by-step guide
Let’s take a look at the six steps dividing you and your limited liability company.
1. Select the state
It’s best to open any company, including an LLC, where you plan to do your business. If the company exists physically abroad, make sure to