Many people think that the name “limited liability company” (LLC) denotes that this is the only business structure or entity type that provides liability protection. LLCs have only been in existence throughout the US since the 1990s. They are a sort of hybrid between a corporation and a limited partnership offering certain advantages and disadvantages of each. They are somewhat untested in case law in contrast with corporations, which offer the same level of personal liability protection, and which have been used for centuries. Choosing an entity or business structure type such as LP, LLP, Corporation (S or C) or LLC requires careful analysis of the business plan, finance structure, tax planning and exit strategy, and can result in costly mistakes if not addressed thoughtfully.
MYTH: LLCs are the best entity choice and the only one that gives liability protection
By Debra Scheufler|2018-06-15T16:53:51+00:00October 12th, 2015|myth|Comments Off on MYTH: LLCs are the best entity choice and the only one that gives liability protection