Pros and Cons of Limited Liability Companies
Pros
•Cheap to form and maintain.
•Relatively few governance formalities.
•Limited liability for owner.
Cons
•State tax treatment may be unfavorable.
•Liability protections might be easier to breach than a corporation’s.
•More expensive to form and manage than a sole proprietorship.
The limited liability company, or LLC, has become a popular legal entity choice for small businesses in many fields. The reason for the LLC’s popularity is simple: it offers business owners limited liability at low cost. It is also easy to operate, with very few mandatory requirements. Wyoming adopted the first LLC statute in 1977, but it was not until the late 1990s that the IRS ...
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