LLC vs. Corporation vs. Sole Proprietorship: Form an LLC (3/11)

▶▶ Learn more about LLCs: http://llcuniversity.com ◀◀ In this video, we explain: - Why LLCs are the best structure for the majority of entrepreneurs - Why Sole Proprietorships offer no protection whatsoever - Why Corporations are complex and subject to double taxation [=================================] -- WHAT IS AN LLC? -- An LLC is a Limited Liability Company. It is a legal entity (also known as a business structure) and it can be used to run a business, or it can be used to hold assets (such as real estate, boats or aircraft). The owners of an LLC are called "members". An LLC can be owned by one person (called a "Single-Member LLC") or an LLC can be owned by two or more people (called a "Multi-Member LLC"). An LLC is a business structure designed specifically to protect your personal assets from the liabilities of the business. [=================================] -- WHAT IS A CORPORATION? -- A Corporation is also a legal entity and it is most often used to run a large company with shareholders and investors. The owners of a Corporation are called "shareholders". After you form a Corporation, you must also elect a Board of Directors (to oversee the company) and you must elect Corporate Officers (to execute and run the day-to-day business). Corporations are what we typically think of when we hear Microsoft, Apple, IBM, McDonalds, etc. [=================================] -- WHAT IS A SOLE PROPRIETORSHIP? -- A Sole Proprietorship is when a person does not form a business entity and they operate their business as themselves. In the eyes of the law, you ARE your business. This is a very risky setup because if your business is sued, then you are personally responsible for all debts and liabilities. This means that your personal assets (home, cars, and your bank accounts) are at risk of being used to cover those debts and liabilities. We'll save you some time right off the bat... a Sole Proprietorship = a bad idea. A Sole Proprietorship offers you no protection whatsoever. A Sole Proprietorship is typically setup when someone is unaware of the options they have when it comes to setting up their business structure. In essence - a Sole Proprietorship is not protecting anything. Not you. And not your personal assets. [=================================] -- WHICH IS BEST FOR YOU? -- To learn which business structure is best for you, please visit our website for the full article: http://llcuniversity.com