You are planning to start a new business that will operate “contactless” convenience stores, which will allow people to grab what they want and pay without interacting with a cashier. Due to start-up costs, you expect the business to generate losses the first two years; after that, you hope to get a 20 percent return on your investment. You prefer to own the business entirely by yourself and design the technological systems and operation methods for the stores, yet you want trustworthy people, two per store, to handle the day-to-day operations. You’d like to take a salary from the business, minimize taxes, and protect yourself from liability.

Why is a limited liability company an especially good business form for your company?
How might you be taxed on your salary and any profits from the business if you choose to organize as an LLC?

Answer rating: 100% (QA)

A limited liability company LLC can be an especially good business form for your company because it offers personal liability protection allows for fl... View the full answer