A major advantage of organizing your business as an LLC or an S corp is that you can protect your personal assets from the creditors of your business. "Limited liability means you can't be financially responsible for more than your investment in the company," writes Greg McFarlane in his book, Control Your Cash: Making Money Make Sense. "If you put in $10,000, and incur $11,000 in debt, you're only potentially liable for $10,000. Your creditors (check that, your LLC's creditors) can't 'pierce the corporate veil,' as the phrase goes."
Another common aspect of LLCs and S corps is that they help you avoid paying both personal and corporate taxes. The difference is that in an S corp, owners pay themselves salaries plus receive dividends from any additional profits the corporation may earn, while an LLC is a "pass-through entity," which means that all the income and expenses from the business get reported on the LLC operator's personal income tax return, says Ebong Eka, a CPA who also pens his own blog about the world of entrepreneurship at MoneyMentoringMinutes.com.
Both LLCs and S corps can also deduct pre-tax expenses, such as travel, uniforms, computers, phone bills, advertising, promotion, gifts, car expenses, and health car premiums, McFarlane writes.
From this siteIt's important to note that if you start an LLC or an S corp you will have to do a name search as part of your application process.
You don't have to register your product name, but if you prefer Federal protections for your title you can
apply for a copyright with the USTPO.
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