- Owners’ responsibility for debts and other liabilities is limited even if they have control of the business.
- Profits and losses do not have to be allocated according to ownership interest.
- Owners get to choose whether the LLC is taxed as a partnership, a cooperative, or as an individual in some states if you are a sole-member LLC.
- LLCs are more expensive to establish than partnerships and sole proprietorships.
- Legal paperwork must be filed with your state.
- LLCs are taxed at the entity level and a franchise tax may be imposed (varies by state) and pay a revenue fee based on total income for the year.