Why choose a limited liability company? - VLF Video Educational Series
Vlf Video Educational Series – Limited Liability Company
Joseph Colvin: Hello and welcome to today’s installment of the Video Educational Series of VLF. My name is Joseph Colvin.
Diren Singhe: I’m Diren Singhe.
Joseph: Today we’re going to talk about creating a limited liability company or an LLC.
Diren: Joseph limited liability companies are one of the four types of companies we’ve seen our clients form. Probably the most common that you see before they come to us is the sole proprietorship. We’ve also seen general partnerships, of course, corporations, and as you mentioned, LLC is a limited liability companies. Why do you think we’ve seen so many of our clients favor the LLC form?
Joseph: Well, I think the primary advantage was down to flexibility. That comes in two forms. Both flexibility in tax treatment, either tax as a partnership or tax as a corporation and also flexibility in governance.
Diren: Once you have that flexibility, that’s not enough. What is it that these people are discussing amongst themselves before they come to us so that we can set it up for them?