Pros and Cons of a Limited Liability Company
While I agree with most of what is said in this article, there are a few points that I would like to add. The LLC will generally provide liability protection to its members. However, if it is a single member LLC that ends up in bankruptcy, some bankruptcy courts have refused to recognize limited liability. As the article points out, the LLC can choose to be taxed as an S corporation which can be beneficial with regards to payroll taxes owed by the owners of a small business. Another benefit to small businesses is the reduced ongoing paperwork requirements. Small businesses frequently fail to comply with corporate requirements for documentation of directors and shareholders’ meetings, etc.
See original article here: https://www.allbusiness.com/pros-and-cons-of-a-limited-liability-company-llc-2517-1.html