A “limited liability company” which is commonly known as an LLC has a wide range of benefits. This is because LLC has been representing a variety of characteristics of a particular corporation. A wide range of individuals are even opting for LLC company registration in Dubai. This is because Dubai has been offering a variety of opportunities for its business community too.

An LLC has been offering advantages like one does not has to pay a wide range of taxes like a corporate tax. One is free from all sort of additional burden like they do not have to pay their children school fees if they have opened an entirely new firm in one of the Emirates of the UAE.

But there are certain disadvantages of LLC too. Some of them are as follow.


Different owners of a particular LLC are known as members. These members have to pay certain self-employment tax too. An LLC can surely choose whether it wants to be dealt as a corporation or they want to be treated as a partner on a partnership basis. This needs to be done when a member is filling a specific “federal tax” return. They even have to pay a particular unemployment compensation too. One does not have to pay this sort of tax if they are a sole proprietor.


These limited liability companies are even costly as compared to a specific sole proprietor. If one wants to form a particular LLC as their business structure then the firm should have two members or more. This is not possible with that organization which has only one owner. But one can form a specific corporation with only one owner. For a specific state purpose, one can register their firm with the “secretary of state”. But one is also able to register it as a “limited liability company” (LLC) which has one owner.

 State Availability

The limited liability company’s specific structure is one of the youngest as compared to other business’s structure. As it is new so certain laws which are related to its core development are still under progress. In a variety of states, a specific LLC structure is still not available.

These are some of the disadvantages which are associated with a particular limited liability company. So, before one opts for opening a particular LLC they should surely keep these points in their mind. See it here for more cons of LLC formation.