While there are numerous professions to go for, setting up
an independent business is every entrepreneur’s dream. Every business setup in
UAE requires a particular type of legal scaffolding to help it prosper without
facing any intermediate hurdles. Using the right business structure to erect a
company is imperative to its ultimate success in the market. One of these
corporate structures is Limited Liability Company or more commonly abbreviated
as LLC. In this article we will share 5 reasons why you should go for an LLCformation for your business.
Avoid Double Taxation
First off, LLC gives you shelter against taxation. Many
entrepreneurs and SMEs opt for LLC because it avoids double taxation. Under
most cases of C-Corp business structure, the company and its owner are
separately taxed each year. This is prevented in LLC formation since these
setups are taxed more like a sole proprietorship.
Choose Your LLC
Location
Most owners often face complications when finding a good
location for their work space. A LLC formation helps the owner secure a work
place in their near proximity instead of looking for a far distant place to run
their operation from. You not only save on heavy taxation, but also avail a
huge variety of serviced offices in the commercial district that can be used
from day 1.
Easy to Incorporate
Changes
Another great advantage of an LLC is its flexible system
that facilities owners to easily add partners, sell interest, or make
administrative changes. Unlike C-Corp, LLCs enjoy fewer restrictions on many
levels that helps it to incorporate almost immediate changes in company
policies.
Easy Registration
Since LLC is a fast and simple company structure, almost
every business can get register in various zones around UAE. For instance, a
company needs to register for a particular business in UAE then it will contact
a professional company setup agency and within a weeks’ time the license will
be mailed at the owner’s doorstep.
Asset Protection
Above all, a LL Company setup gives protection to the
owner’s assets since very little can be done if anyone tries hostile acquisitions
or mergers. After a satisfying period of growth, you can easily convert it into
an S-Corp or C-Corp by yourself.
