Pros & Cons of Establishing a LLC for your Business

A limited liability company (LLC) is a corporate structure whereby the members of the company cannot be held personally liable for the company's debts or liabilities. Limited liability companies are essentially hybrid entities that combine the characteristics of a corporation and a partnership or sole proprietorship.

Pros:

• Limited Liability
• Pass Through Federal Taxation on Profits
• Management Flexibility
• Easy Startup and upkeep 
• You have the flexibility of being taxed as a sole proprietor, partnership, S corporation or C corporation.
• Less paperwork and lower filing costs
• Members can receive revenues (and write off forfeitures) that are larger than their individual ownership percentage.

Cons:

• Limited Liability has limits
• Self employment tax
• Consequence of member turnover
• As an LLC member, you cannot pay yourself wages.
• Investors may be more likely to put their money into a corporation, making it harder to raise financial capital.