Limited Liability Companies Offer Asset Protection And Tax Benefits
Operating your business as a limited liability company (LLC) provides you with some of the best asset protection features of a corporation combined with operational and taxation features of a partnership (or a sole proprietorship if there is just one member). Like a Subchapter S corporation, an LLC can be subject to single income taxation (in contrast with a C corporation’s double taxation at both the corporate and shareholder level). Day-to-day operation and ownership of a LLC, however, tends to be easier because the formalities are less strict than those governing S corporations.
Of course, you should consult with your attorney and your accountant to discuss legal and tax issues before forming an LLC or changing the current legal form of your business.
About the Author
With an advanced international law degree from Georgetown University and more than 15 years of real world legal experience, Attorney Mike Young is President of the Internet Ethics Council and creator of Website Legal Forms Generator software. He helps entrepreneurs protect and grow their businesses online.
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Check out what others are saying about this post...[...] C corporations tend to be large publicly traded companies while S corporations are more common for privately held businesses. Although entrepreneurs favor S corporations to C corporations, there is a growing trend to operate enterprises as limited liability companies (LLC) instead where the tax advantages of a limited liability company are similar to an S corporation and the formalities for operating a business are less burdensome. tagsasset protection business entity C Corporations corporate shares c corporations double taxation Limited Liability Companies limited liability companies limited liability company S Corporations shareholders s corporation s corporationsPopularity: unranked [?] Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages. [...]