LLCs and Small Business





Limited Liability Corporation (LLC) and Taxes

LLC and Taxes- An LLC is not a separate tax entity like a corporation; it is what the IRS calls a pass through entity, like a partnership or sole proprietorship. All of the profits and losses of the LLC pass through the business to the LLC owners, who report this information on their personal tax returns. The LLC itself does not pay federal income taxes, but some states do charge the LLC itself a tax. Use the links on this page and take advantage of the LLCs that will be most beneficial to your business.

Limited Liability Corporation (LLC) and Real Estate

It is much easier and typically less costly to make the choice of entity decision at the beginning of the investment cycle. More often than not it can be as simple as specifying and/or negotiating the deal based on a specific entity taking title. Once you are invested, it often takes more money and the agreement by multiple persons (ex: lenders; investors; partners; spouse; etc.) to effectuate a change in ownership.

Limited Liability Corporation (LLC) vs S Corporation

The LLC is a relatively new type of hybrid business structure that is now permissible in most states. It is designed to provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. Formation is more complex and formal than that of a general partnership.

Limited Liability Corporation (LLC) by State

Limited Liability Corporation - LLC and Taxes- An LLC is not a separate tax entity like a corporation; it is what the IRS calls a pass through entity, like a partnership or sole proprietorship. All of the profits and losses of the LLC pass through the business to the LLC owners, who report this information on their personal tax returns. The LLC itself does not pay federal income taxes, but some states do charge the LLC itself a tax. So if you form an LLC in Delaware, Maryland,Wyoming, Michigan, Nevada, California, New York please check with your State of choice.

Limited Liability Corporation (LLC) Definition

Limited Liability Company Definition: An LLC has characteristics of a corporation, but it is not. It does offer some of the benefits of a corporation, particularly the limitation of an owner's liability. An LLC provides lawsuit protection, credibility, tax savings, deductible employee benefits, asset protection, anonymity, the ease of raising capital, creating a separate legal entity for personal protection, an LLC has a broad range of powers beyond that of a sole proprietorship, small claims court benefits, separate liability for corporate debts, and perpetual duration.

Limited Liability Corporation (LLC)
Individual Owner Limited Liability Corporations: The IRS treats one member Limited Liability Corporations as Sole Proprietorship for tax purposes. This means that the Limited Liability Corporations itself does not pay taxes and does not have to file a return with the IRS. As the sole owner of your Limited Liability Corporations, you must report all profits or losses of the Limited Liability Corporations on Schedule C, and submit it with your 1040 tax return. If you leave money in the company's bank account at the end of the year, to cover future expenses or expand the business you must pay taxes on that money.

LLC vs Partnerships

LLC vs Partnerships - Limited Liability Company Definition: An LLC has characteristics of a corporation, but it is not. It does offer some of the benefits of a corporation, particularly the limitation of an owner's liability. An LLC provides lawsuit protection, credibility, tax savings, deductible employee benefits, asset protection, anonymity, the ease of raising capital, creating a separate legal entity for personal protection, an LLC has a broad range of powers beyond that of a sole proprietorship, small claims court benefits, separate liability for corporate debts, and perpetual duration.

LLC Loans

After you have made the decision to form your business, as an LLC, you may have need for financing. Whether you do it yourself or have an incorporation firm helping you out, not to mention the other expenses that your business will need.

Dissolving an LLC

Whether you run into cash flow trouble, or your attention turns elsewhere, dissolving an llc can seem like a complicated task if you don't know where to begin. There are a number of specific forms that you will need to fill out.

Limited Liability Corporation (LLC) Advantages and Disadvantages

The owners are members, and the duration of the LLC is usually determined when the organization papers are filed. The time limit can be continued if desired by a vote of the members at the time of expiration. LLC's must not have more than two of the four characteristics that define corporations: Limited liability to the extent of assets; continuity of life; centralization of management; and free transferability of ownership interests.


LLC vs Partnerships

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