Do you know that the owners of a sole proprietorship or general partners of a partnership are not protected from the judgments against and liabilities of the business or from the acts of their business partners. Yes that is true! That is one of the big reasons to choose for a LLC.
The members owning units in Limited Liability Companies (LLCs) benefit from “limited liability.” Their liability is limited to their investment in the stock of the Corporation or in the units of the LLC.
Besides the limited liability, here are some additional tax benefits of choosing LLC as form of entity for your business.