Small businesses keep the United States afloat. We all know about the convenience of major corporations and their broad reach both nationwide and throughout the world…but it’s the entrepreneurs that fill in this extreme gap and provide the country with the flexibility it needs to remain a top competitor. The benefits of an LLC can help your small business reach heights it never before thought possible through a mixture of local laws and tax initiatives designed to support you through thick and thin.
Did You Know?
What is the business landscape looking like these days? There are over 27 million small business operating throughout the United States, some run by individuals and others with hundreds of workers. Although these all dip into a variety of industries, some of the more successful have been tapping into the dynamic fields of programming, web design, marketing, translation and social media. Whether or not an LLC will seem appealing will depend on what your goals are for the future.
What’s The Future Of Small Businesses?
Small businesses are doing incredibly well. Many studies are even seeing small businesses seeing more pull over the next few decades than ever before, helped in no small part by technology and the benefits of partnership initiatives such as an LLC. According to an economic report by the National Association Of Small Business, the majority of small businesses surveyed were S-corporations at 40%. These were followed close behind by LLCs by nearly 25%. What are LLC benefits, anyway, and is it something to apply for?
What Is An LLC?
Even experienced businessowners are learning something new every day. If you’re not sure what an LLC is then a little research will help the ground feel more steady beneath you as you run through the basics of inception and creation. An acronym for ‘Limited Liability Company’, this is a useful resource if you plan on combining your business efforts with other companies down the line. A partnership means everyone has to feel comfortable, which includes both legal and financial incentive. You can learn how to form an LLC online or with a representative.
How Does This Affect Taxes?
A small business has to operate by both state and nationwide tax laws. Learning how to form an LLC means learning about the unique tax requirements you’ll have. The IRS will automatically classify an LLC as a partnership or what’s known as a ‘disregarded entity’ — this depends on whether or not your business has more than one owner. An election that wants to be effective at the beginning of a given tax year needs to be filed either on or before the 15th day of the third month of said corporation’s tax year.
What Else Should I Know About An LLC?
It can seem like a lot to juggle, but a small business worth its salt will put forth the necessary effort to keep up with the competition. The major three rules an LLC name need to follow include being different from an existing LLC in the same state, indicating you are an LLC and not having words restricted by the state you’re in. The two options the IRS will give you for taxation are existing as either a C corporation or an S corporation. Everything will gradually fall into place as you learn how to form an LLC and whether or not starting an LLC will benefit you in the long-term.