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A limited liability company (LLC) is a structure allowed by state statute. Owners of an LLC are called members, members may include individuals, corporations, other LLC's, and foreign entities. An LLC can be formed by one or more members and there is no maximum number of members.
For federal tax purposes, an LLC may be treated as a partnership, a corporation or a disregarded entity.
A limited liability company (LLC) can also be organized as a professional limited liability company (PLLC) or a limited company (LC).
The main advantages of forming an LLC are:
- You can avoid double taxation since the LLC is not a separate taxable entity.
- The profit/loss allocation need not be proportional to ownership interest for tax purposes.
- Owners (Members) have limited personal liability, protecting your personal assets.
- LLC's have more management flexiblity than corporations. LLC's may be managed by it's owners (Members) or by a Manager appointed by it's Members. The Manager may also be a Member.
- LLC's improve your credibility as a legitimate business.
- Attract investors as an LLC easier than as a sole proprietorship.
There are many benefits to forming a Limited Liability Company compared to operating as a sole proprietorship. If you are starting a business, start with IncAssist, Incorporated.
Click here to form your LLC today!
Thank you,
IncAssist, LLC
Starting a business? Start with us!
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