For example, depending on your state, initial filing fees and annual fees exist to maintain your status. There are fees and costs associated with running your business as an LLC.There are also certain disadvantages to an LLC, such as: You can choose a 'disregarded entity' status for IRS taxation purposes, meaning you claim your LLC's income on your personal tax return.Unlike a corporation, you retain flexibility in running and managing your business with an LLC.Having an LLC usually makes it easier to open a business bank account.Running your business as an LLC gives you increased credibility as a business.An LLC's limited liability status helps protect your personal assets.But for many small business owners, the pros often outweigh the cons. LLCs provide small business owners with benefits such as liability protection that aren't available to sole proprietorships or partnerships.Īs with all legal business entities, there are pluses and minuses to running your business as an LLC.LLCs are typically easier to maintain and manage than other legal business entities.LLCs are the most popular business entity, and for a good reason: LegalZoom has helped more than 2 million people launch their LLCs since 2001. If you've been considering forming a limited liability company (LLC) to make your small business official, you can kickstart your LLC using LegalZoom's easy and affordable LLC formation service.

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