WHAT IS AN LLC?
An LLC is a business entity that is separate from its owners. The owners of an LLC are not personally liable for the debts and liabilities of the LLC. This means that if the LLC owes money to creditors or is sued, the creditors cannot go after the personal assets of the owners.
BENEFITS OF SETTING UP AN LLC
There are many benefits to setting up an LLC, including personal asset protection and tax advantages.
PERSONAL ASSET PROTECTION:
As we mentioned above, one of the main benefits of setting up an LLC is that the owner’s personal assets are protected from creditors. This means that if the LLC owes money to creditors or is sued, the creditors cannot go after the owners’ personal assets.
TAX ADVANTAGES:
Another benefit of setting up an LLC is that it can help you save on taxes. This is because the IRS treats LLCs as pass-through entities. This means that the income from the LLC “passes through” to the owners and is taxed at their individual tax rates. This can be a significant advantage over other business entities, such as C corporations, which are taxed at corporate tax rates
(which are usually higher than individual tax rates).
SETTING UP AN LLC IN NEW JERSEY
If you’re thinking about setting up an LLC, New Jersey is a great state to do it in. This is because New Jersey has very favorable laws for LLCs.
For example, in New Jersey, you only need one member to set up an LLC (most states require two).
Additionally, there are no restrictions on who can be a member of an LLC in New Jersey. This means that you can be a member of your own LLC (something that’s not allowed in all states).
As you can see, there are many benefits to setting up an LLC. If you’re thinking about setting up an LLC, New Jersey is a great state to do it in because of its favorable laws for LLCs. Contact a lawyer today to get started on setting up your own NJ LLC!