‘[tweetmeme source=”RoseA_smallbiz” only_single=false]’ Over at Small Business Trends, I found Anita’s give away for a free processing for your business  to become an Incorporation or LLC (Limited Liability Company). But I am honestly not so familiar with the two and so I have to ask when is best to consider that your company is good for Inc. or LLC?

Gladly, a commenter named T.D., shared his view about it.

Rose – using an LLC or corporation (or other limited liability entity, like an LLP) is almost never a bad idea. Their primary purpose is – as the name implies – a way to limit the owners’ liability. It allows the company to be treated as a separate entity and separately responsible for anything that the company could get sued for.

People also use limited liability entities for tax purposes, though LLCs are generally treated as partnerships by the IRS. In any event, there are tax advantages to forming an entity.

Another big benefit is when there are multiple owners. LLCs and corporations force you to think about how the business is managed, who makes what decisions, who can write checks and for how much, who can sell company assets and, perhaps most importantly, what happens when there are disagreements or when an owner leaves (death, disability, divorce).

These issues are never adequately addressed in a “canned” formation, yet they are issues that impact almost every business, no matter how small. For around $1,000 plus filing fees you can have an attorney counsel you through the whole formation process and help you make decisions regarding management issues and other matters in your operating agreement or bylaws.

Thanks T.D.I’m hoping I could get more answers to my question very soon. 😉