Charlotte, NC: LLC or Limited Liability Company Benefits
An LLC or Limited Liability Company has become one of the most popular platforms for small to medium sized businesses when owners are looking for not only tax benefits, but protection from the liabilities someone may face when in business for themselves. In order to form an LLC, the managing members must first decide which state they want to register their business in. Once they have done so, Articles of Organization must be submitted to that state. After the state register’s the LLC, the managing members can take advantage of several conveniences and breaks that those who have not done so will not be privy to.
One significant advantage of forming an LLC is that similar to a partnership, an LLC has pass-through taxes which mean that the business taxes are “passed through” to the individual’s tax return. This is extremely advantageous to the managing members, as it means that they will not endure double taxation of both corporate and personal income tax as the Corporations do. Additionally the LLC grants its managing members protection from liabilities of the LLC or any debts it may incur to only the amount that the member invested in the LLC. It should also be known that members of the LLC do not have to be U.S. Citizens. The LLC structure also allows for significantly less paperwork than the Corporation, not requiring annual meetings, minutes or a Board of Directors, and there is minimal reporting required to state and other agencies. All in all the LLC is simpler to operate than other forms of business platforms. If you are interested in forming an LLC, or any corporate entity, or just have further questions, please do not hesitate to contact me.