LLC Corporation

 

Why choose a Limited Liability Corporation? LLC (Limited Liability Company) provides limited liability protection to their owners (called members). Typically, owners are not personally responsible for business debts and liabilities of the limited liability company so creditors cannot pursue owners’ personal assets to pay business debts.

Key Benefits: Creating an LLC typically provides the business owner with the following advantages...

  • Owners are not held personally responsible for business debts and liabilities.
  • Typically an LLC does not pay taxes at the business level. Income/loss is reported on the owners’ personal tax returns and any tax due is paid at the individual level.
  • Typically an LLC does not pay taxes at the business level. Income/loss is reported on the owners’ personal tax returns and any tax due is paid at the individual level.
  • Limited liability company owners have flexibility in structuring company management.
  • LLCs have less annual paperwork than, and do not face the meeting requirements imposed on C corporations and S corporations.
  • Forming an LLC may help your business be perceived as a more legitimate business than a sole proprietorship or general partnership.
  • Written consent of LLC members must be obtained prior to increasing ownership in the company or adding new owners.

Keep in Mind LLCs are subject to ongoing requirements in the state of incorporation, such as filing annual reports and paying the applicable annual report fees and/or franchise tax.