Could a limited liability company be right for your business?

Anyone taking on the endeavor of starting a business knows that there are many details to consider. In addition to needing a good idea and resources to turn the idea into something tangible, it is also necessary to decide which type of business structure could best suit a Pennsylvania entrepreneur’s needs. These days, more and more people are taking note of the benefits of a limited liability company. 

An LLC essentially merges two other types of business structures, a corporation and a partnership, into a single type. An LLC allows the owners, or “members” as they are referred to, to have tax benefits and other upsides of partnerships while also having less personal liability for issues, much like a corporation. As a result, parties who do not feel that a partnership or corporation structure would suit their needs often opt for an LLC. 

Some specific ways entrepreneurs could benefit from an LLC include: 

  • Limited personal liability in the event of lawsuits, debts, bankruptcy and business downturns 
  • Pass-through taxation that allows for the elimination of corporate income tax 
  • A formalized structure that could lend more credibility to the company overall 
  • Member management that allows owners to have a say in the day-to-day operations 

These are only a few of the various benefits that a limited liability company could provide. It is also important to keep in mind that this structure could have its downsides as well. Pennsylvania entrepreneurs would be wise to consider the details of the different types of entities before coming to their decision, and when they do, following state laws and regulations regarding formation is necessary. 


The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.

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