LLC stands for limited liability companies. These types of businesses are usually owned by a group of people known as members. Unlike other business structures, establishing an LLC is relatively easier. American Samoa has made the process a lot more flexible and easier with the creation of an online portal that is attractive even to international business people.
To start your own LLC, you need to go through a series of processes including choosing your company’s name, getting a copy of the Articles of Organization and finding a registered agent to handle the process for you. That said, if you want to open an LLC online through the American Samoa portal, you wouldn’t be needing the services of a registered agent as you can conveniently handle the process.
There are different types of business structures here in the USA, including sole proprietorship, general partnership, limited partnerships and corporations but here are the benefits of creating an LLC business:
- It limits your personal liability for business debts
One of the advantages of opting for an LLC type of business is the fact that the members have limited liability protection. With LLCs, only the company’s assets can be used to compensate for damages such as debts and lawsuits against the business. If you are a member of a limited liability company, you can be sure that your personal assets will never be used to compensate for business debts, losses or other forms of damages.
- Availability of capital
Another major reason to form an LLC is the fact that it is easier to raise capital for the business. Recall that there is no maximum number of members within a limited liability company and therefore to raise capital fast, the company could decide to bring in more members who will in turn contribute funds, properties or services for the growth of the business.
- Tax advantages
Members of limited liability companies also enjoy certain tax advantages. No separate tax is levied on limited liability companies as is the case with corporations. The profits and losses of limited liability companies are often passed on to the members as in the case of partnerships.
- Easy management
Managing a limited liability company is a lot easier. Members may however decide to find a professional to manage the business if they don’t want to do it themselves.
- Cheaper cost
The cost of an LLC is also relatively cheaper when compared to other forms of business. Its registration fees vary from state to state so members must check the financial requirements of their state to know what is expected of them.