Should I form an LLC for my travel business?

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My answer to Should I form an LLC for my travel business?

Answer by Ken Larson:

The majority of my client technology startups who are establishing single person or no more than 2 or 3 person operations, establish a Limited Liability Company (LLC) registered with the state and with the federal government.

It separates personal assets from company assets and protects them. When selling a product or services and generating revenue an LLC has many tax advantages. You can register it as Sub Chapter 'S' for tax purposes and pass the revenue and the expenses through to your personal tax return, paying no taxes as a company. You thus avoid the double taxation issue prevalent with many of the other types of incorporation.

An LLC limits your personal liability for debt and court judgments that may not fall in your favor.

Representing yourself as a company allows you to pursue financing as an enterprise. I am sure you can think of a creative name for your LLC and you can complete the articles of incorporation necessary to bring your enterprise into existence. The term, "LLC" must conclude the name of your company if you decide to form such an organization.

Should I form an LLC for my travel business?

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About rosecoveredglasses

2 Tours in US Army Vietnam. Retired from 36 Years in the Defense Industrial Complex after working on 25 major weapons systems, many of which are in use today in the Middle East. Volunteer MicroMentor. I specialize in Small, Veteran-owned, Minority-Owned and Woman-Owned Businesses beginning work for the Federal Government. MicroMentor is a non-profit organization offering free assistance to small business in business planning, operations, marketing and other aspects of starting and successfully operating a small enterprise. You can set up a case with me at MicroMentor by going to: http://www.micromentor.org/ key words: "Federal Government Contracting"

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