One of the leading reasons for forming a LLC is the lawsuit protection it offers the owners, known as members. If the LLC is sued, the members’ financial exposure is limited to their amount of investment. An investment of $10,000 is the maximum that can be lost. This assumes there is no fraud perpetrated by [...]
Tag Archives | LLC
LLC vs. S Corporation
Which to choose “LLC or S”? Let’s compare the LLC vs S Corporation to answer the question. An S Corporation has been one of the most preferred and popular forms of business structures in the United States for several years. Recently however, many business owners are realizing the benefits of a relatively new structure the LLC. In comparing these [...]
Delaware LLC
If you are thinking of forming a Delaware LLC, this article can help in walking you through the process. A Delaware LLC has many benefits from other states. Although if you are not located in Delaware and decide to form your LLC in Delaware, you may still need to file the Delaware LLC back in [...]
Forming a LLC in 2013
The gratifying thing about forming a LLC is that they are affordable and easy to set-up. Yes, you heard right. It is easy to form a LLC (Limited Liability Company). Despite the far spread of the rumor, the truth is that you do not need a lawyer or use the service of a formation company to set up your LLC.
S Corporation or LLC
A company attains an S-Corporation standing by electing to be taxed as a sole proprietorship or as a partnership company. This status is attained after completing the formalities laid down by the Internal Revenue Service. Many small businesses adopt the S-Corporation position because profits and losses are then appended to the investors or shareholders’ individual tax returns. This does away with the “double taxation” that shareholders would otherwise have to pay when a profit is made and again when they receive it as an income.
Where to Form a LLC
Even if you are registered as a “foreign corporation,” you are still liable to pay the same tax and fee as the in-state company. Hence, if the purpose was to avoid few taxes, you land up paying them plus the additional registration fee and other annual charges.
Why an LLC
Are you having second thoughts about establishing a Limited Liability Company? Here’s some food for your thought, which hopefully will quell your doubts.
Creating a LLC
Creating an LLC or limited liability company is one of the popular forms of business registration in the United States. Creating an LLC is possible to do without having to hire a lawyer although most experts advise that it is always in a company’s best interests to get good legal and financial advice before making any major business decision.
Limited Liability Company
The major feature of a limited liability company is that it limits the liability of the owners to the extent of their equity while excluding the personal liability from the general debts and other obligations of the company. This is unlike other forms of business ownership like a sole proprietorship in which the owners assume [...]
Benefits of a LLC
from some of the liabilities of being in business and at the same time receive some of the tax benefits of other more elaborate business registrations like an incorporation or partnership. In order to register a business as an LLC or limited liability company the business has to prepare articles of organization and file them [...]
