LIABILITY COMPANY (LLC)
an increasing number of states have authorized a new form of business
organization called the Limited Liability Company (LLC). The LLC
is a hybrid form of business enterprise that offers the limited
liability of the corporation but the tax advantages of a partnership.
However, as a whole, LLC's are very similar to the S Corporation.
OF THE LLC
advantage of the LLC is that it is taxed as a partnership: profits
are passed through the LLC entity, and taxes are paid personally
by the members of the company. Another advantage is that the liability
of the members is limited to the amount of their investments. Furthermore,
unlike limited partnerships, the LLC does not grant limited liability
on the condition that the members refrain from active participation
in the management of the company. Yet another advantage is that
corporations and partnerships, as well as foreign investors, can
be LLC members, whereas these entities cannot be shareholders in
S Corporations. Also in contrast to S Corporations, there is no
limit on the number of shareholders-members of the LLC.
OF THE LLC
of the LLC are relatively few. However, there are some issues to
address. For example, members of an LLC formed in one state may
have limited liability in that state but face unlimited liability
in another state. Another disadvantage is the fact that because
the LLC is a relatively new form of enterprise, little case law
exists in regard to LLCs. In some situations, the restrictions placed
by statute on the transfer of ownership interests in LLCs may also
be a disadvantage.
| Limited Liability Company | S
INFORMATION ON CORPORATIONS OR
ANY BUSINESS MATTER PLEASE CALL
JEFFREY S. POSIN & ASSOCIATES -- (702) 897-5870
HELP YOU DETERMINE THE RIGHT STRUCTURE
FOR YOUR BUSINESS!