A Limited Liability Company (LLC) has both the characteristics of a partnership or sole proprietorship with the limited liability of a corporation. Hence LLC’s are termed as hybrid entities. LLC regulations areallowed under state statutes; the regulations of LLC’s may vary from state to state.In many jurisdictions LLC provides limited liability to its Owners in a legal formIt is easier to set up an LLC than corporation, It may be organized as not-for profit. LLC provides more flexibility and protection
LET US HELP YOU UNDERSTAND WHY CHOOSE LLC:
- An LLC has an optionto be taxed as a sole proprietor, partnership, S Corporation or C Corporation (if they would otherwise qualify for such tax treatment), providing for a great deal of flexibility.
- LLC with multiple members that chooses to be taxed as partnership may specially allocate the share of income, gain, loss, deduction, or credit of the company to the members on an agreement based, other than the ownership percentage of each member so long as the rules prescribed under TheTreasury Regulation(26 CFR) 1.704-1 are met.
- An LLC is not required to pay taxes at the business level, as it is not a separate taxable entity. Which simply means, Income/loss is obtained during the course of business is transferred to owners’ personal tax returns and any tax due is paid at the individual level.
- LLCs have flexibility in allocating profits and losses among its various owners.
- Before adding new owners in LLP, written consent of existing members must be obtained.
- LLC ownership is not limited to “100” owners as in case ofS corporation has. LLC’s usually does not have ownership restrictions.
- The owners of LLC have flexibility in shaping company management.
- LLCs have less annual paperwork, and do not required to face the meeting essentials imposed on C corporations and S corporations.
- LLCs are not limited to one class of ownership; LLCs can have different membership classes.
- LLC formation may help your business be perceived as a more admissible business than a sole proprietorship or general partnership.
USATAXX understands all the complex issues faced under these circumstances. With our broadskills acquired through experience and observations in this field, u can rely on our advice and assistance to help us to make it quick, simple & easy for you.