Limited Company Registration: Two for the Price of One

2007-03-08 10:33:40

( Business )



A BUSINESS ENTITY

Limited company registration is one of among several ways that you can set-up your business organization, and it involves the application and approval of a limited liability company, also referred to as an LLC.

A limited liability company is a business or corporate body that is duly created and subsequently protected by the existing laws of the place in which the limited company registration took place. The bylaws governing local LLC’s will be different from those with offshore company registration.

Limited company registration is a fairly new concept, having been in existence for only a couple of decades. Nevertheless, Limited company registration is fast gaining foothold as more and more entrepreneurs recognize the benefits of having an LLC registration.

As the name suggests, a limited liability company provides safeguards and benefits for the owners of the business. Under a limited company registration, the owner’s liability coverage will hold the investors legally responsible only for the amount they have invested in the LLC, regardless of how much the company as a whole is accountable for.

GETTING THE BEST OF BOTH WORLDS

Compared to a corporation, an LLC registration is easier to organize and manage, requiring less stringent requirements and documentation. However, like a corporation, the owners of an LLC are not personally liable for the business’ losses. The personal assets of an LLC owner cannot be used to pay for the financial obligations of the company. An LLC is actually a fusion of both corporation and partnership, combining the best features of both.

Another advantage of a having an LLC registration is that the taxes imposed on the business is less because a limited liability company is only taxed at the individual level and not on the corporate level, as it is with corporations.

If you are venturing into a business and do not want the rigidity and formality of a corporation, or the unsecured situation of a partnership, then limited company registration is your best bet. Just make sure you know the business rules that govern the place where you will register your LLC.


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