Contractors, do you want to become licensed as an LLC?

One of the principal advantages of operating as an LLC is that LLCs are pass-through entities for tax purposes meaning the earnings of the LLC flow directly to the members and each member is taxed only on the earnings he/she receives. Another advantage of operating as a LLC is that it is easier for the equity of an LLC to be transferred to the owners than is the case for a corporation. LLCs are generally easier to form than corporations and are not subject to as many corporate formalities.

Obtaining a contractor’s license as a LLC has significant benefits, and operating as a LLC may be attractive to many contractors. In particular, it is an option that should be considered by contractors that currently operate as a sole proprietorship or partnership.

A limited liability company or LLC is essentially a business that blends partnership and corporate attributes with the actual owners or members of the LLC accountable for limited liabilities only. One of the principal

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