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Limited Liability. Members of a LLC benefit from the 'limited liability' characteristic of this legal entity and are protected from personal liability for business disputes that arise between the LLC and a third party. This means that if the LLC incurs debt or is sued, members' personal assets are usually exempt. This is similar to the liability protections afforded to shareholders of a corporation. Less Formalities. LLC's laws in most states require much leass formalities and Less Recordkeeping compared to a corporation. As such, there is less registration paperwork and there are smaller start-up costs. Profits distribution. Members can distribute profits with much less restrictions than in a corporation. Ownership ratio can be different than profit distribution ratio and not necessarily tied up to each member's investment.
Profits distribution. Members can distribute profits with much less restrictions than in a corporation. Ownership ratio can be different than profit distribution ratio and not necessarily tied up to each member's investment.