These are the most common myths about opening a business in the United States with an LLC

When starting and opening a business, large or small, in the United States, inquire about the LLC (Limited Liability Companies, Limited Liability Company).

LLCs (for the English acronym) are legal formations for corporations, emphasizes Camino Financial, and their purpose “is to provide protection for their owners (called “members”) from the financial obligations of the company, as a separation has been made between the member and the company.

They note that “LLCs are very popular in the United States because they are easy to create and have very simple tax requirements. In addition, they can operate flexibly and own other businesses, including other LLCs.”

On the Internal Revenue Service (IRS) site, they explain that a Limited Liability Company (LLC) is a corporate structure allowed under state statutes. Each state may use different regulations and you should check with your state if you are interested in starting a limited liability company.

They have no maximum number of members. Most states also allow “sole member” LLCs, which have only one owner, emphasizing on the IRS site “that some types of businesses generally cannot be LLCs, such as banks and insurance companies.”

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The LLC and Its Benefits

Julio Oyhanarte, a lawyer specializing in immigration issues, indicates that the LLC is the most popular type of business in the United States and perhaps in the world.

The LLC, Oyhanarte points out, “protects our assets, protects us from a lawsuit or if it goes bankrupt. If someone wants to sue you, they can do so against the LLC, they will not affect your personal assets.

The 3 myths about LLCs, according to Oyhanarte

The lawyer, through his social networks, dismantles three myths that have been created and falsely spread about LLCs.

1. Must be in the United States to open the LLC.

FAKE: LLCs can be opened by a foreigner without a visa and without the need to be in or set foot in the United States

2. Opening an LLC is very expensive, it is for a large investor.

FAKE: It is inexpensive to open an LLC and can be used for a simple business or a more sophisticated business.

3. Opening an LLC is complicated and requires a lot of paperwork.

FAKE: An LLC can be opened very easily and in a few days.

To learn more about LLCs, read what the IRS says here

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