This is the one of the most simple and flexible organizational structures you may consider for your business. This structure gets subjected to self-employment tax. Although there is flexibility to this structure, roles can be confusing if not confirmed. Make sure to prepare a LLC Operating Agreement to avoid this. This agreement also strengthen the LLC when a member leaves, otherwise the most LLCs would cease to exist with identity depending on the members. The Operating Agreement would also outline how your LLC would be treated for taxes.
Compared to a sole proprietorship and a partnership, a LLC seems more advantageous although the costs are slightly higher. Like the name suggests, there is limited liability with no member being is personally liable for the company debts. An LLC would be a great option for your business from the easy setup to daily operations. Although your LLC would be simple enough for you manage on among the members, it is a good idea to keep in touch with an accountant or a lawyer.