My brother Andrew and I have opted to go for a domestic limited liability company to reasons. With the critical analysis of the taxation policy, customer credibility, as well as asset protection requirements, enabled us to opt for the limited liability company at the expenses of other types of corporations. With such, our ultimate investment goals and objectives will be realized. The paper will examine and lengthily discuss the reasons as to why we opted for a limited liability company.

Firstly, the aspect of asset protection was one of the core reasons for our decision. In limited liability company (LLC), assets are presumed tobe owned by the company and not the owners of the company. With such, our personal assets will be saved from any form of vulnerability. Secondly, the various tax-related issues forced us to opt for this kind of a corporation. For instance, in LLCs the not bound to tax at their business levels. The tax burdens will hence be passed through to us and hence paid as personal taxes. This action is vital in ensuring the financial stability of the company.

Thirdly, the increased credibility by consumers and the little compliance requirements by LLCs influenced our decisions greatly. For instance, the credibility to the consumers and other stakeholders will signal someformal and legal commitment of our firm. The LLC is bound to minimal state compliance requirements thereby giving us enough time to concentrate on the day-to-day running of our company. Fourthly, the flexibility in the management practices of LLC was fundamental in our decision. With such, we will be able to manage the organization effectively without the need for directors.