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8/6/2015, · When choosing an ,LLC, or ,partnership, for the form of your ,business,, numerous considerations come into play, including personal liability, ownership and management, cost of forming and registering the ,business,, and taxation. One of the more popular forms of ,business, organization is the ,limited liability company,.
A ,limited liability company, (,LLC,) is the US-specific form of a private limited company.It is a ,business, structure that can combine the pass-through taxation of a ,partnership, or sole proprietorship with the limited liability of a corporation. An ,LLC, is not a corporation under state law; it is a legal form of a company that provides limited liability to its owners in many jurisdictions.
LLC partnership, (Multi-member ,LLC,) A ,limited liability company, (,LLC,) can have one owner or multiple owners, who are called members. LLCs with multiple members are called multi-member LLCs or ,LLC partnerships,. Under an ,LLC,, members have a legal shield between their personal assets and the ,business,, meaning they generally can’t be sued for the company’s actions or debts. However, they can …
An ,LLC,, or ,Limited Liability Company,, combines the best parts of corporations, sole proprietorships, and ,partnerships, into one ,business, entity offering owners liability protection, flexible management structure, and certain tax advantages.
A ,partnership, is an arrangement where parties, known as ,business, partners, agree to cooperate to advance their mutual interests.The partners in a ,partnership, may be individuals, businesses, interest-based organizations, schools, governments or combinations. Organizations may partner to increase the likelihood of each achieving their mission and to amplify their reach.
Limited liability companies, (LLCs) are the simplest and most inexpensive ,business, structure in the United States. The pros and cons of LLCs include being easy to form, protecting owners from personal liability, and offering flexible tax options. However, LLCs also make raising money difficult and can misalign owner tax burdens and their earnings from the...
A ,partnership, becomes single member ,LLC, when the members of the ,LLC, sell their shares to one remaining member. The ,business, is then able to continue operations with no changes, but the remaining owner is required to change tax elections and the method of accounting used.
When deciding between an ,LLC, or a general ,partnership,, it's important to know that an ,LLC, has both limited liability and a formal filing requirement, while a general ,partnership, has no formal filing requirement and lacks liability protection.
Similar to general ,partnerships,, the general and limited partners may wish to enter into articles of limited ,partnership, to clarify partner roles and obligations in operating the ,business,. Although less complex to form than a standard corporation, LLCs require more formal documentation than general ,partnerships,.
What is an ,LLC,? An ,LLC, is a legal entity designed explicitly to protect ,business, owners from any liabilities accumulated by the company. Liabilities are financial commitments that the ,business, has made, but has yet to pay — think of things like debts and loans.
According to the IRS, “a ,limited liability company, (,LLC,) is an entity created by state statute. Depending on elections made by the ,LLC, and the number of members, the IRS will treat an ,LLC, as a corporation, ,partnership,, or as part of the owner’s tax return (a “disregarded entity”).