What is a Limited Liability Company?
The LLC is a distinct business entity. An LLC offers an alternative to partnerships and corporations by combining the corporate advantages of limited liability with the partnership advantage of pass-through taxation.
Limited Liability Companies are a relatively new business form in the United States, though they have a long-standing history in Europe. LLCs were first formed in the United States in 1977, and were granted pass-thru tax status by the Internal Revenue Service in 1988.
As a result, LLC can elect to be taxed like partnerships, only at the individual level when profits are paid as dividends. This yields a considerable advantage over C corporations, which are subject to double-taxation – once at the corporate level, and again at the individual level when profits are paid as dividends to the shareholders.
Similar to corporations, LLC shield personal assets from business debt. Note, however, that LLC have a limited life that varies from state to state and do not have stock (and thus do not get the benefit of stock ownership and sales). Currently all 50 states recognize the LLC business form.
Thursday, May 8, 2008
Sunday, May 4, 2008
The LLC Certificate Of Formation Is Essential
A limited liability company is usually a small scale organization with multiple owners. To start such a company, the members need to fill in an LLC certificate of formation.
What is an LLC certificate of formation and how to get one? This is usually the question that a proposed group of members generally ask. The LLC certificate of formation is the form issued by the secretary of state for the formation of a limited liability company. Though the broad outlay of this form is the same, there may be minor variations in the details from state to state. There may be differences in the in the general guidelines to the formation of such an organization too.
http://www.llcincorporationworld.com/llccertificateofformation.html
What is an LLC certificate of formation and how to get one? This is usually the question that a proposed group of members generally ask. The LLC certificate of formation is the form issued by the secretary of state for the formation of a limited liability company. Though the broad outlay of this form is the same, there may be minor variations in the details from state to state. There may be differences in the in the general guidelines to the formation of such an organization too.
http://www.llcincorporationworld.com/llccertificateofformation.html
Friday, May 2, 2008
Forming an LLc Corp: An introduction to the benefits of the S Corporation
Advantages of setting up an S corporation, or S corp
Fortunately, you also have some good news. You can often fix both problems easily, quickly, and often inexpensively by forming an s corp, or S corporation.
How? First, you can setup a limited liability company and use it to run your business. This largely solves the unlimited liability problem. A limited liability company, or LLC, means you aren't liable for the debts and obligations of the business merely because you own some or all of the business.
Second, you can use a quirk of recent tax laws to have your LLC taxed as an S corporation, or S corp. But let me explain.
A limited liability company, or LLC, lets its owners select the tax treatment they want for their business. For example, an llc with a single owner can be a sole proprietorship or a C corporation (also know as a c corp) or an S corporation (also known as an s corp). And an LLC with multiple owners can be a partnership or a C corp or an S corp.
This tax flexibility means you can pick the tax treatment that saves you the most taxes--often times, thousands of dollars a year in self-employment taxes if you elect to have your LLC treated as an S corporation.
Here's the bottom line: If you're starting a new business or if you operate an existing business, you must investigate the limited liability company option and the S corporation election you can make for your limited liability company.
You owe it to yourself.
You owe it to your family.
http://www.scorporationsexplained.com/
Fortunately, you also have some good news. You can often fix both problems easily, quickly, and often inexpensively by forming an s corp, or S corporation.
How? First, you can setup a limited liability company and use it to run your business. This largely solves the unlimited liability problem. A limited liability company, or LLC, means you aren't liable for the debts and obligations of the business merely because you own some or all of the business.
Second, you can use a quirk of recent tax laws to have your LLC taxed as an S corporation, or S corp. But let me explain.
A limited liability company, or LLC, lets its owners select the tax treatment they want for their business. For example, an llc with a single owner can be a sole proprietorship or a C corporation (also know as a c corp) or an S corporation (also known as an s corp). And an LLC with multiple owners can be a partnership or a C corp or an S corp.
This tax flexibility means you can pick the tax treatment that saves you the most taxes--often times, thousands of dollars a year in self-employment taxes if you elect to have your LLC treated as an S corporation.
Here's the bottom line: If you're starting a new business or if you operate an existing business, you must investigate the limited liability company option and the S corporation election you can make for your limited liability company.
You owe it to yourself.
You owe it to your family.
http://www.scorporationsexplained.com/
Thursday, May 1, 2008
LLC Formation In All States
What must be in the name of an LLC? Section 105 of the Uniform Limited Liability Company Act states the following:
(a) The name of a limited liability company must contain "limited liability company" or "limited company" or the abbreviation "L.L.C.", "LLC", "L.C.", or "LC". "Limited" may be abbreviated as "Ltd.", and "company" may be abbreviated as "Co.".
Some states have slight variations upon the above restrictions so it is best to check your state law before selecting a name. Also, in some states, licensed professionals--such as doctors, lawyers, and accountants--must set up a "professional LLC" instead of a standard LLC. The easiest way to determine the peculiarities of your state law regarding the name is to look at the instructions for the form articles of organization issue by the secretary of state (or analogous government office). Click on the link to your state at the top of the right column on this page for additional information.
http://www.medlawplus.com/library/legal/llcformation.htm
(a) The name of a limited liability company must contain "limited liability company" or "limited company" or the abbreviation "L.L.C.", "LLC", "L.C.", or "LC". "Limited" may be abbreviated as "Ltd.", and "company" may be abbreviated as "Co.".
Some states have slight variations upon the above restrictions so it is best to check your state law before selecting a name. Also, in some states, licensed professionals--such as doctors, lawyers, and accountants--must set up a "professional LLC" instead of a standard LLC. The easiest way to determine the peculiarities of your state law regarding the name is to look at the instructions for the form articles of organization issue by the secretary of state (or analogous government office). Click on the link to your state at the top of the right column on this page for additional information.
http://www.medlawplus.com/library/legal/llcformation.htm
Colorado LLC Formation
LLC is not taxable entity. Income (loss) is passed through to members, and members pay taxes as individuals. Members non-US residents are not liable for US income tax for income derived outside of the United States and passive income derived from the United States, such as interest income, dividend income and capital gains.
Despite of the fact, that LLC is not taxable entity, under some conditions LLC needs to file annual income tax return with IRS.
No income tax return required if:
1) LLC conducting a trade or business outside of the United States, and
2) All LLC's members are non-US residents for income tax purposes.
LLC is required to file federal annual income tax return with IRS if:
1) LLC conducting business in US, and
2) LLC has two or more members.
LLC conducting business in US and having only one member is not required to file income tax return. The income and expenses need to be reported on the member's individual tax return.
LLC Name
The entity name of a limited liability company must contain the term "limited liability company", "ltd. liability company", "limited liability co.", or "ltd. liability co." or the abbreviation "LLC" or "L.L.C."
LLC's name must be distinguishable upon the records of the Secretary of State from the names of other Colorado business entities or foreign corporations authorized to transact business in Colorado.
Despite of the fact, that LLC is not taxable entity, under some conditions LLC needs to file annual income tax return with IRS.
No income tax return required if:
1) LLC conducting a trade or business outside of the United States, and
2) All LLC's members are non-US residents for income tax purposes.
LLC is required to file federal annual income tax return with IRS if:
1) LLC conducting business in US, and
2) LLC has two or more members.
LLC conducting business in US and having only one member is not required to file income tax return. The income and expenses need to be reported on the member's individual tax return.
LLC Name
The entity name of a limited liability company must contain the term "limited liability company", "ltd. liability company", "limited liability co.", or "ltd. liability co." or the abbreviation "LLC" or "L.L.C."
LLC's name must be distinguishable upon the records of the Secretary of State from the names of other Colorado business entities or foreign corporations authorized to transact business in Colorado.
LLC Kit
Are you ready to set up your own limited liability company?
Why not get going right now? You'll save time as well as hundreds of dollars setting up your llc by using one of my do-it-yourself California llc kits. You'll immediately reduce your business or investment risk. And you'll probably begin saving thousands of dollars a year in taxes.
Special Bonus: Sample Single Member and Multiple Member LLC Operating Agreements
Another benefit of going the do-it-yourself route. All of the do-it-yourself kits include both a single member (one owner) and multiple member (multiple owners) operating agreement. Get started even faster by using one of these sample operating agreements as your starting point!
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Why not get going right now? You'll save time as well as hundreds of dollars setting up your llc by using one of my do-it-yourself California llc kits. You'll immediately reduce your business or investment risk. And you'll probably begin saving thousands of dollars a year in taxes.
Special Bonus: Sample Single Member and Multiple Member LLC Operating Agreements
Another benefit of going the do-it-yourself route. All of the do-it-yourself kits include both a single member (one owner) and multiple member (multiple owners) operating agreement. Get started even faster by using one of these sample operating agreements as your starting point!
src="http://pagead2.googlesyndication.com/pagead/show_ads.js">
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