Advantages of Forming an LLC for Your Online Business

Lots of physical businesses shift into a more inclusive realm of online businesses. The 21st century has established a virtual and digital world wherein everyone can connect with their essentials and wants on the Internet. On choosing what type of business entity, you might need help to further understand the whole thing. Having the vast advantages and benefits, you perhaps want to hear about the limited liability company (LLC) that covers liability protection, unlimited number of members, flexible management structure, among others.

If you are living in Pennsylvania and are planning to form an LLC there, one of the questions you need answer to is how much does an LLC cost in Pennsylvania. To answer this, it would cost 125 dollars for the state filing. Other fees may apply such as fees for name reservation, fictitious name registration and for additional transactions.

To guide you on the advantages of forming an LLC for your online business, here’s the list for you to find out:

Name Protection

You might be a startup business and want to immediately gain trust and reputation with the real and virtual masses. Forming an LLC for your online business shields your brand name in the entire state. As a legally-registered business, it will safeguard your service or product with similar offers in the state.

Pass-through Taxation

An LLC has pass-through taxation wherein the business does not need to report and pay taxes. Instead, the business losses and incomes pass through to the LLC members’ personal tax returns.

Less Paperwork

Whether it is online or not, businesses are required to submit and report regularly with their legal documents during annual meetings. Considering it, an LLC does not have to conduct annual meetings and archive extensive records. Some states even don’t have to file annual reports.

Management Flexibility

Online businesses might be exhausting too as there are lots of factors at home that could affect the overall business operations. What is exemplary with LLC is that it has a board that manages the day-to-day operations by their own roles and functions, giving a distributive and systemic management structure.

Expansion Pliancy

With the more inclusive and connected interaction, online business has opened doors for potential clients and even shareholders through the help of the Internet. Good to know that LLC has its membership flexibility to accept ideal owners and partners to foster without the minimum number. You can have shareholders as many as you want from having that power to allow an unlimited number of owners.

Practical Profit Distributions

Given that an LLC can have an unlimited number of members, it allows the business owners to do the profit distributions according to their agreement, without the requirement for equal distribution. In business partnerships, most especially in startups, some owners perhaps supported the business foundations. From knowing such an aspect, business owners have the freedom to impose their own profit distribution.

Liability Protection

You can not say that your business is a type of LLC without personal liability protection. It is the safeguarding of your personal assets from the business’ financial and legal circumstances such as having a filed lawsuit against your business. As a separate legal entity, LLC can segregate your business’ liabilities from your personal legalities.


In this highly digital world, online business is indeed an ideal niche. By understanding one of the best business entities, you could enjoy the advantages of an LLC by registering in your State today.

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