# Overview A Limited Liability Company (LLC) is a business entity that operates as a sort of mix between a [[Sole Proprietorship]] and corporation. It offers the corporation benefits with the ease and simplicity of a sole proprietorship. # Key Considerations ## Forming an LLC Form the LLC in the state where you live. Florida - sunbiz.org ### Maintaining an LLC ## Taxes An LLC, by default, as a pass-through entity. It uses a Schedule C on the 104- return. An LLC can choose to be taxed as a corporation, though, like an [[S-Corp]] or [[C-Corp]]. ### Salaries As a single member LLC, you can pay yourself by transferring the money from business bank account to personal bank account via check (or Venmo). No payroll or 1099 is needed. # Pros - The owners of the LLC are not personally responsible for the debts and the liabilities of the LLC - In order to take advantage of the *limited liability* you must operate the business as a separate entity from you, such as separate bank accounts # Cons - Cost and steps of setting up an LLC - More obligations, such as reporting Beneficial Ownership Reports # Use Cases # Related Topics Sources: - [How To Pay Yourself (And Taxes) in a Single Member LLC - YouTube](https://www.youtube.com/watch?v=unRnRaUKKEE)