The pros and cons of LLCs include being easy to form, protecting owners from personal liability, and offering flexible tax options. However, LLCs also make raising money difficult and can misalign owner tax burdens and their earnings from the company.
What is the difference between a LLC and a corporation?
The main difference between LLC's and corporations is the ownership of the business. You might say that a corporation is owned by individuals who purchase shares, while the LLC is owned by individuals.
The primary cost of forming an LLC is the state filing fee, which ranges between $40 and $500, depending on your state. In addition, you will also need to pay annual fees to maintain good standing of your LLC. If you choose to use a service provider to help form your LLC, you will face additional costs on top of the State filing fee.