Business

Top Advantages of Having an LLC

Top Advantages of Having an LLC

It is crucial to understand that the legal structure impacts how you pay taxes, make decisions and receive income. If you decide to start a new business, you need to note various options you need to consider.

A limited liability company is a type of business that shares specific characteristics with both corporations and partnerships. In other words, when you structure your business as an LLC, there are various benefits you will get. It is advisable to ensure you understand how to run this type of business before forming it. Here are the benefits of having an LLC.

Limited Personal Liability

business consultantOne of the reasons why most entrepreneurs go for limited liability companies is that they have limited liability for their decisions. If the business is sued or owes debts, the owners should not pay for the debts.

In this case, it is essential to understand that the partnership and sole proprietors are liable for all business debts. That is why you need to know that members of LLCs and other corporations are well-protected from these business debts.

Membership Flexibility

business consultingWhen you want to start an LLC, you need to know that it has a flexible membership structure. When comparing it with corporations, you will note that there are various benefits you will get. Corporations will not have more than a hundred shareholders. Also, it is vital to note that they cannot include foreign shareholders, and they cannot contain shareholders that are corporations. However, LLC does not offer flexibility when it comes to the type of owners they can have.

Flexible Profit Distributions

business servicesAnother reason why most entrepreneurs are going for limited liability companies is due to flexible profit distributions. Before creating it, you should understand that they have flexibility in the way they distribute profits. However, it is essential to note that they do not distribute them equally or depending on the ownership percentages.

Less Paperwork

When you plan on creating an LLC, you should understand that there is less paperwork. When comparing them with corporations, you will note that they do not hold annual shareholders meetings, so there is less paperwork. Also, it is essential to understand that they do not have recordkeeping requirements. Moreover, they are not entitled to file annual reports.…

Pros and Cons of Limited Liability Companies

Pros and Cons of Limited Liability Companies

If you are a sole proprietor and desire to take your business to the next level, forming a limited liability company is the best option. It will allow you to raise capital and still run your business as your own and see it flourish. Running an LLC like any other business has its pros and cons too, and as an entrepreneur, it is paramount to know beforehand what you are getting into. However, an LLC has more benefits than downsides. The good news is you can form an LLC without so much hassle by hiring a formation service.

Below are the pros and cons of starting an LLC:

Pros

Limited Liability for Members

Limited liability protects members from being held personally liable due to company actions and moves. This means that shareholders and the LLC are separate entities, so their personal properties are protected. For example, when a creditor is collecting company debts or when the company has a lawsuit against it, the members’ assets are safe.

Fewer Formalities

less paperworkUnlike corporations, which are required by law to hold meetings and regularly document every discussed issue, the law is lenient on LLC. The LLC law does not require a regular meeting with members, neither does it press on documentation of minutes discussed.This reduces paperwork and allows easier business running since there is no much consultation needed as long as you abide by law and agreement when carrying out business.

No Limitations on Membership

There are no limitations on the number of members; you can have more than 100 members on your members’ board. Shareholders can be citizens or non-citizen of the United States. Corporations require shareholders to be not more than 100 and must be natural citizens of the US. The law also allows shareholders of an LLC to place interest in a trust.

Enjoy Flexible Taxation

flexible taxationAn LLC allows its members to enjoy profits without being taxed by the government as a corporation. Members receive tax-free profit from the LLC and only pay tax individually.

Cons

Members May Carry Other Members’ Burdens

Most states require the LLC to be dissolved if a member dies or declares bankruptcy. Even though the LLC can still run but this is after dissolution and starting afresh with new regulations.

Limited Liability Protection May Be Overturned

A court can overturn the limited liability protection, and members declared liable for LLC’s action. This normally happens if you don’t separate business from personal transactions.…

How Social Media Has Changed Business

How Social Media Has Changed Business

It is fair to state that social media has become a significant influence on how most things are conducted. With the advancement of technology, most people can access the internet, which has increased the number of people who are using social media.

If you are running a business, you may have experienced the influence of social media. We are currently living in a digital era where most companies have a social media account.

It is gradually becoming mandatory for different enterprises to have an online presence, and this includes having an account on various social media platforms.

Customer Service

woman with cardOne of the main ways social media has influenced business is through improving customer service. Customers are one of the main assets to businesses, and without them, most enterprises will not succeed. Through different social media platforms, customers have found effective means to communicate with various enterprises.

As a result of the information found about customers on social media, data has become essential. By reading what customers like, businesses have personalized their services; this has led to better customer service.

Transparency

Before social media platforms become popular, many businesses were not transparent to their customers and the public. It was challenging knowing what is going on in different business operations. It was nearly impossible to make businesses accountable for the services and the goods they provide.

In this digital era, things have changed for the better. Because of social media’s influence, companies are concerned about what is being said about them online. A comment on a given business on a social media platform like Twitter can help a business make more sales or losses.

Customers can communicate with businesses online, which has led companies to be more transparent when engaging with their customers.

Advertising

 Internet marketingAnother way social media has affected business is through advertisement and marketing. Many people are using different social media platforms, which provides an excellent opportunity for companies to market themselves and reach more potential customers.

By utilizing big data, businesses can find people who are most likely to purchase or be interested in the type of products and services they sell. This has enabled target advertising and has helped many businesses increase their sale and make a profit.

As technology advances, social media will have a significant impact on many businesses. There are more ways social media is influencing business.…

Importance of Oil and Gas Industry in the Global Economy

Importance of Oil and Gas Industry in the Global Economy

You should note that the petroleum industry has a huge impact on the global economy. That is because the oil and gas process determines the health of the global economy. The truth is that oil and gas are quite important to both businesses and individuals. Thus, to protect the economy, there is a need to protect this industry.These are some of the reasons the oil and gas industry is quite important.

Major Source of Energy

It is estimated that oil and gas provide more than 50% of energy. Thus, oil and gas are the primary resources. Without them, the country will come to a halt. Although there are sustainable and renewable initiatives, none contribute a considerable amount of energy in the world. They are either expensive, unreliable, or difficult. You should note that oil and natural gas run the world. In fact, without it, some countries cannot sustain their daily operations.

Energy Dependence

Without the production of natural gas and oil, some countries will depend on foreign supplies. As a result, the country’s economy is controlled by the price of oil and gas imports. For instance, oil is controlled by the OPEC countries that fix the price of oil. Also, this industry has been disrupted with shale oil.

Improve the Economy

oil drillingThe truth is that the oil and gas industry plays a critical role in shaping the economy of the country in different ways. For instance, some countries can now export oil instead of importing it. In this way, a country gets more money. This is quite important as most industries like manufacturing can get profitable margins without the need to increase the price of oil and gas. As a result, this results in lower energy and gasoline costs. With businesses spending less on energy and gasoline, they can spend more on other business operations. The economy will always grow when there is less spending on oil and gas.

The truth is that the future of the economy depends on the health and strength of the oil and gas industry. In fact, this sector keeps expanding from time to time. Therefore, with additional investments in drilling and pipelines, many countries are likely to become exporters of oil and gas. Also, there are companies that provide equipment for growth and expanding the industries. Thus, there is a need for governments and companies to invest in this sector.…