There are many advantages to forming a Limited Liability Corporation (LLC) and you want to hold on to these for as long as possible.
Unlike several other corporate entities, the taxes of an LLC are much easier to figure since the company is not taxed as a separate entity. Instead, the profits and losses are claimed on the personal tax returns of the members of the business. Plus, you can have as many members as you’d like. And, best of all, members of the LLC are not personally liable for the losses against the company – which is a huge advantage over a sole-proprietorship, if you’re in it alone.
So, it will thrill you to learn that your corporation can continue in perpetuity, or an unlimited lifespan. However, this is not because there is some rule concerning an unlimited lifespan, though. Under this structure, a single person is not a business. Further, LLC members may come and go throughout the life of the company. So, the business does not have to have a set end date. At some point along the line, members may choose to close the business or pass it down. There is a lot of choice associated with the formation and maintenance of a Limited Liability Corporation.
There is a great article on the LawTrades blog concerning a similar issue. You can find it here: What are the risks and benefits of forming an LLC?. If you would like some assistance with LLC formation, please feel free to reach out to LawTrades. We can match you up with the right attorney to help with your LLC formation needs.