I believe that for the business that I had outlined in the previous assignment, it would be best if I had an LLC. Why? Because an LLC stands for a Limited Liability Company. That’s a good thing when you’re 13 years old.
The Limited Liability part of LLC means that if somebody is displeased with our product, and decides to sue you, they can’t technically sue you. They can only sue the company for making a faulty product.
So for example, if I start making websites and one glitches so badly that they get really angry at me, my record won’t be tarnished by this incident. I’ll continue onwards, but my company will have a lower satisfaction rating.
Also, it has some tax advantages that I like. Since I’m only 13, I won’t be making enough money to pay if I get double taxed. But I might be able to pay for one tax, if I even get taxed.
I also don’t have to get a license for programming, something I’m pretty sure exists if I were to become something else.
I can also get refunds for things that are business expenses, such as internet. Last but not least, if I expand, I’ll have fewer problems with capital, and LLC sounds a lot more authoritative and professional than Sole Proprietorship.
So that’s why I think that an LLC will suite me and my purposes just fine.
Personal Finance Lesson 80 Assignment: 200 Words on the Business Form is going to be Best for Your Business
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