• Owners of LLCs are able to take out business credit cards in the name of the company.business image by peter Hires Images from Fotolia.com
  
  Limited liability companies are a form of business venture that allows owners to enjoy some of the tax benefits of corporations with the flexibility of partnerships. This type of company has many advantages with regard to credit, securing property, and allowing tax-friendly payments to its members. A limited liability company must contain as least two members to avoid being taxed as a sole proprietorship.
  
  

Limited Liability

• The advantage is in the name. A limited liability company protects its founder's personal assets against any losses the business might incur. This means a creditor can't come and take your home because of the debts of your business. This is advantage is enough for some proprietors to declare the business as a limited liability company.
  
  

LLC Profits and Tax Favors

• According to the Gaebler Ventures website, profit from a limited liability company is not considered earned income by its members, so it is not subject to self-employment tax. Members of the LLC are allowed to pay themselves in guaranteed payments such as writing a check from the business made out to the member, which falls under the tax-friendly category of "fringe benefits" at the end of the year. Profits and losses of the LLC are filed on the business owner's income tax return. The LLC files a separate form listing its members' taxable profit. The LLC itself does not pay taxes.
  
  

LLC Credit

• Corporations may be members of limited liability companies. This allows owners of LLC's to create layers of credit and fringe benefits such as retirement plans with increasing levels of liability protection. Corporations and LLC's maintain credit ratings separate from the parties that create them, allowing a business to successfully take out loans and acquire property in the name of the LLC or corporation. All of this may be done with an LLC's continued liability protection of the owner's personal assets.