When choosing a business structure, it’s important to consider what the future may hold for your company. Flexibility is a key factor when it comes to the success of your organization. Structuring your business as a limited liability company, or LLC, allows your outfit to grow with ease while limiting your personal financial and legal liability.

Forming your organization as an LLC allows you and other members the benefit of pass-through taxation, in which you report income from the business on your individual tax returns. Pass-through taxation lets you avoid the double taxation experienced by C-corporations, since your organization can opt to be taxed as any of the following entities: partnership, sole proprietor, C corporation or S corporation.

Choosing the limited liability company structure also means you won’t be held responsible for the business’s debts unless you secure business loans or credit with personal collateral. Members of an LLC are also protected from lawsuits against the business, provided no fraud is involved.

This type of business structure also simplifies company growth. An LLC can have just one member or an unlimited number of members. The departure of a manager or other integral member doesn’t affect the structure of the business.

And as your organization expands, you control the share class and accompanying rights of the company stock. This characteristic gives you the freedom to issue the type of stock that’s appropriate for the shareholder.

Another attractive feature of a limited liability company is that almost any type of business can be structured this way. Although restrictions vary by state, the few common exceptions include non-profit organizations, insurance companies and financial institutions.

Many companies now choose to form LLC entities because this type of business structure melds the limited liability feature enjoyed by corporations with the pass-through taxation facet of a partnership. These benefits, as well as more freedom and ease of operation, make choosing the limited liability business structure an obvious choice.