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Why Is LLC Better Then Sole Proprietorship?

Author: Julia Jaf
by Julia Jaf
Posted: Jun 04, 2014
llc company

Business incorporating in Texas is the best idea that you can undertake to reap have dividends on account of the opportunities that Texas provides, but the problem is that people don’t know how to decide whether to form an LLC in Texas or not. In this article you will get four reason that will act as a fillip which will help you decide whether forming an LLC company in Texas is a good idea or not.

If you are finding it difficult to carry with your job all over again and you want new venues where you can put into more efforts and fortunes that will help you yield in the long run then incorporating a business in Texas is a fair bet that you can avail. However, one thing that is imperative is that what kind of business you are incorporating in Texas that means whether it is a sole proprietor ship or a limited liability company. So, how to form a judgment about what to do next when Texas is providing a plethora of opportunities that you can exploit to amass fortune. Then this article has been para-dropped for your rescue to decide whether an LLC company fare better or a sole proprietorship. The reason that LLC can fare better if you have decided about incorporating a business in Texas is because of the following reasons.

1. A strong message to customers: If you are starting a sole proprietorship then in all probabilities you will be the independent runner of the business. It will create apprehensions in the mind of the customers whether you are experienced or not. Though it may save a considerable pie of the taxes that you have to pay to the Texas government but the fact is the incorporating a sole proprietor business will not give you that much venues in the profit that you are looking for but in case your form an LLC company then the scenario might be different.

  1. Asset protection: In case you have incorporated a sole proprietorship business then in all probabilities you have to pay for all the losses to the share holder from your own pocket but in case you form a LLC company then you will not be having problem to figure out how to pay the shareholders in case the company incurs huge losses.
  2. Tax holidays: Incorporating business is always good for the economy of the country and they government in the form of goodwill gestures provide various tax holidays. So, incorporating a big company like a LLC is somewhat more noticeable in the eye of the government as compared to a sole proprietorship. The government also provides leverage to deduct personal expenses from your income but only in the case the company is LLC.
  3. Issue shares: In case you have incorporated a LLC company you can release share in the market which you cannot do in case it is a sole proprietor business. This provides you the answer of your question of how to raise capital quickly for the business so that you can expand it.
About the Author

The author is an expert in the business incorporation in Texas, being a practitioner in Texas the author knows How to Form an Llc in Texas and help others to form the business in Texas.

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Author: Julia Jaf

Julia Jaf

United States

Member since: Jun 02, 2014
Published articles: 4

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