According to statistics, a limited liability company (LLC) is the most common form of doing business. Modern entrepreneurs choose an LLC for their business for several significant advantages. After all, the registration of an LLC allows you to engage in small business by opening a company of one person.
Also, a limited liability company is excellent for both small and medium-sized businesses. You should look for the best LLC if you want to convert your company to adopt this type of legal status. Different countries have their regulations when it comes to this type of business structure. There are several reasons why you should convert your company to an LLC. They include:
Flexible System of Founders
A new member can join the founders at any time based on the decision of the general meeting. You can also leave the company at any time by selling your share in the authorized capital. In an LLC, one founder is allowed, and the maximum number of members of the company is specific depending on the rules of the business structure.
Minimum Liability for Founders of a Legal Entity
LLC registration implies limited financial liability for all members of the company. Each founder risks only the size of his share in the authorized capital of the company. Suppose, with the status of an individual entrepreneur, a citizen risks all his property as an individual. With an LLC, there are no similar risks.
Free Choice of the Form of Taxation
Various forms of taxation are available for LLC. With low turnovers, the company can pay taxes in accordance with the simplified taxation system, that is, a streamlined form. There are also specific forms of tax payment for LLCs. If necessary, the company can remain in the main form of taxation.
No Taxation When the Organization Is Stopped
In addition to the free choice of the form of payment of taxes for LLC, there are additional tax advantages. If a company suspends its business for a certain period, then for this period it does not pay taxes and fees. At such times, it is necessary to file a zero return for the reporting period to avoid penalties.
Changing the constituent documents is possible not only in relation to the types of activities but also other information about the company. Changes to the constituent documents are possible in case of any changes in the company. It is also possible to edit an LLC charter or issue a new version of the charter for a legal entity.