The limited liability company has surpassed the corporation as the most popular business vehicle for small businesses. Why? Because it was created to provide all the advantages of other commercial entities but without their disadvantages.

Ga LLC is such a simple entity to understand and maintain, yet at the same time gives owners many options when it comes to tax structures, how the business will be owned and operated.

LIMITED LIABILITY

The main reason for forming a Ga LLC is to protect yourself and other owners from being personally liable for business debts and obligations. Without a limited liability legal entity like a Georgia LLC, you will be putting everything you own at risk of potential loss. Given the increasingly litigious environment in our society and aggressive plaintiff attorneys looking for small businesses to target, all Georgia businesses must operate with this legal shield.

Specifically, section 14-11-303 of the Georgia LLC Law states that members (who are owners) are not liable for the business obligations, judgments, and other liabilities of the business simply because they are owners. It excludes the tax obligations of the operations and there are some conditions and exceptions. However, this protection is a great advantage that only becomes more significant as your business grows because successful businesses are more sued.

RAISE MONEY FOR BUSINESSES

When you form a Georgia LLC company, you get more options to access capital to finance your business. Banks are often unwilling to lend money to a new business in whatever form it forms. Another option is to issue ownership interests in a business in exchange for equity capital.

Issuing ownership interests is nearly impossible in a sole proprietorship business. However, with a Georgia limited liability company, there is a concept of ownership and membership units of interest can be issued in exchange for a percentage of ownership in the business.

Having a separate structure as a business entity makes raising capital much easier and provides a well-known structure to do so, which in turn reduces the costs of raising money for your business needs.

PROFESSIONAL IMAGE AND PERCEPTION OF TRUST

With the myriad of business scams and scams out there today, potential customers are suspicious. A new business has quite a challenge to overcome these concerns.

By going through the process to form a Ga LLC for your business and having an official entity as your business, you automatically set yourself apart from others. You see, all you need to do is find a name to call yourself a business.

But starting a Georgia LLC company is a clear sign of smart business planning which, in turn, leads to more professionalism and confidence when it comes to your company’s identity. This can be a huge advantage when it comes to getting customers and building your brand presence in the marketplace.

FLEXIBLE BUSINESS STRUCTURE

The laws allow a limited liability company to be extremely simple when it comes to ownership and operating structures. Less formalities are imposed on you. Consequently, for a single owner business or one with a few related owners, a Georgia company LLC can be set up and structured quite quickly and cheaply.

As a business evolves and grows over time, its ownership and operating structure may need to change to account for growth and potential complexity. For example, the business may admit new owners or bring in a passive investor. Additionally, there may be a need for more official approval processes when it comes to important business decisions.

Ga LLC allows each business and its owners to define for themselves how ownership will be structured and how the business will operate and function on a day-to-day basis. In business, there is no one-size-fits-all solution to all of these issues, and therefore Georgia Company LLC provides ways to customize these critical issues to your unique business situation.

FEDERAL INCOME TAX OPTIONS

A primary reason the Georgia limited liability company has become the entity of choice for small businesses is because in 1997, the IRS passed regulations that allow the business entity to choose how the business will be taxed. There are no additional requirements to qualify for a single tax pass-through layer anymore.

When you form a Ga LLC, your business will be taxed through a single layer of transfer taxes by default. This type of taxation avoids the potentially significant double taxation effect of corporate taxation.

However, in some circumstances, your accountant may advise that a corporate tax structure is more advantageous. In these cases, a Georgia LLC can file an election with the IRS to be taxed as a C corporation or an S corporation. Qualifying as an S corporation requires that the entity and its owners meet a number of requirements. You have more options when it comes to how your business income will be taxed.