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To my knowledge, the only simpler filing for a company than an LLC is a sole proprietorship. LLC's requirements for governance are essentially "have governance"
by musingsole 6y ago
To my knowledge, the only simpler filing for a company than an LLC is a sole proprietorship. LLC's requirements for governance are essentially "have governance", unlike s-corp's dictating specific hierarchies and roles.
An LLC in North Carolina costs ~$200/year to maintain. Delaware is supposed to be cheaper.
Point is, "if they can't pay it, they shouldn't be a business" reasoning which your argument is derived from is flawed and allows for all sorts of death by a thousand cuts situations for businesses. Even if there is an alternative filing type.
- manquer 6y agoShould not be an LLC is not the same as not being a businesses. Propertiorship are perfectly good way of running a small biz. Each category has additional paper work and regulations which protect the people like customers, vendors, employees and investors who they deal with. The "limited liability" part of LLC benefit comes with the cost of following some governance and having seperate finance and agreeing to follow additional regulations as required . Very small businesses should opt for propertiorship just as small business should not go public and become a PLC. The benefit giving access to retail investors comes with cost of deeper regulation in that case.