Operating your business as a limited liability company (LLC) provides you with some of the best asset protection features of a corporation combined with operational and taxation features of a partnership (or a sole proprietorship if there is just one member). Like Subchapter S corporations, limited liability companies can be subject to single income taxation (in contrast with a C corporation’s double taxation at both the corporate and shareholder level). Day-to-day operation and ownership of a LLC, however, tends to be easier because the formalities are less strict than those governing S corporations.
Of course, you should consult with your attorney and your accountant to discuss legal and tax issues before forming limited liability companies or changing the current legal form of your business.
