LLC Starter Kit

Welcome back to our newsletter series! We have heard the call from many of you asking us to resume our weekly publication full of insightful and informative readings. So, we heed your request and dive right into one of the most requested topics: Limited Liability Companies (LLCs). Many PhilanthroInvestors from outside of the US, (and even some from within), have been asking about the benefits associated with crowdfunding through LLCs.

To start, let’s delve into the basics and explore the best advantages of using LLCs for crowdfunding.

“An LLC is a hybrid legal entity with the characteristics of a corporation, partnership, and sole proprietorship.

“LLCs are just another type of entity to protect business owners,” said attorney Ryan Gordon.

LLCs are generally very advantageous for business owners. They provide the same liability protection as corporations without requiring board meetings, or other tedious paperwork and events. It only requires record keeping with the state.

A business of any size can be an LLC, further increasing its flexibility. An LLC is a popular and flexible business legal structure, especially for small businesses and startups.”

Simone Johnson – Business News Daily

So, basically, these are a type of business entity that allows the owners to separate their personal liabilities from those of the business. LLCs are the most common form of business entity in the US due to the many advantages they offer. 

And if you want to start an LLC, here’s How To in 7 simple steps:

Different Types of LLCs

An LLC can be structured as a single member LLC, which is owned by one person, or as a multi-member LLC, which is owned by more than one person. Multi-member LLCs often come in two types: the member-managed LLC and the manager-managed LLC. In a member-managed LLC, each member is responsible for day-to-day decisions, while in a manager-managed LLC, one or more members are responsible for day-to-day decisions. There are also some tax benefits depending on which one you choose.

Advantages and disadvantages

The main advantage of an LLC is the protection of personal assets. LLCs also typically have fewer government regulations and reporting requirements than other types of legal entities. On the other hand, LLCs may have a more difficult time obtaining financing due to their limited ability to sell shares and attract investors.

In conclusion, LLCs provide a great way to limit personal liability, while offering other advantages. They are very popular in the US and are very easy to set up as long as all the necessary steps are followed.

At Equity & Help, we strongly believe that Philanthropic investors can have a great impact on society, allowing them to earn a good return while helping families to own their own home. We understand that the process of starting an LLC and understanding how to properly structure it can be daunting, and that is why we strive to provide the most comprehensive and comprehensive resources for our readers. If you need to open an LLC let us know and we will help you. We want to deepen the conversation in the coming weeks and the topic of crowdfunding, providing all the help we can to those looking to make a difference.

Until then, see you next week!

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