LLC
LLCs (Limited Liability Companies) are common in countries like the United States. They are not a separate legal business entity in the UK. The closest thing you will find in the UK to an LLC is a Limited Company (LTD). Here is a quick overview of what LLC mean.
What is an LLC?
When you open an LLC in the US, you create a flexible business structure that offers liability protection. Owners (called members) are able to protect personal assets from any business liabilities using a “legal shield.”
What is a LLC in Business?
The most common form of what is a LLC company in the States is a private organisation with a small number of owners. In business, you would use an LLC to create a separate entity. There are many benefits, including simplified tax payments, separate accounting, and protecting personal assets like a bank account, house, or car.
What Type of Business is an LLC?
There are many types of business that consider what is a LLC used for. This entity is for SMEs, larger multi-member businesses, and plenty of smaller-scale formats like an internet startup or online retail shop operating out of someone’s extra room.
What is a Single-Member LLC?
The LLC definition extends to a single-member LLC. This is an entity owned and operated by a single individual. In the UK, this is a single-shareholder LTD company. Many freelancers, contractors, and even famous authors stick with this form of LLC for tax benefits.
What is Better for a Small Business: LLC or Corporation?
It can be tricky deciding which form of business structure will be right for you. When you are operating as a sole trader, you would want a UK LTD company. If you are in the US and don’t have a massive operation, sticking to an LLC is best as long as you clearly separate the business assets and your personal finances.
For anyone with a large company using a lot of trade and having many employees, a corporation is your ideal balance of simplicity and security.
What is the Difference Between LLC and Inc?
Think of what LLC means through the lens of a hybrid business model. There is a lot of flexibility in definition, finances, and legal obligations that help a broad variety of businesses. Being incorporated (using the “Inc” signifier) is reserved more for larger companies with a lot of formality.
Conclusion
While the LLC definition is more for the United States, it helps to understand its meaning, especially when opening a new business account for your UK operations. You don’t want to go through the stress and complexity of registering an entity only to discover that you have created something not meant for European trade.
Save yourself time, money, and hassle by working with the Business-in-a-Box option from Omega. Professional assistants will help you register a company, set up a business account, legal operations, and overall structure. With Omega, you get a multi-currency account ready to send and receive international payments to over 150 countries.
Contact Omega today and start your journey to a new LTD operation.