What are some of the benefits/advantages and disadvantages of forming an LLC?
• The primary reason for forming a limited liability company is to limit the liability of the owners. • Interests in LLCs, in addition, are protected from the claims of creditors of their members. • Organizational changes related to the LLC can generally be made in the operating agreement alone (without amending the articles of organization). • Managers and managing members are also protected from personal liability regarding claims pertaining to the exercise of their management authority except for more egregious conduct (criminal or reckless acts, deriving improper personal benefits, voting for unlawful distributions, etc.). • Generally, an LLC with multiple members is treated for Gerogia income tax purposes as a partnership (nontaxable entities that act as conduits for transferring income and loss directly to the individual partners) and a single-member LLC is “disregarded” as a separate entity for tax purpose, the same way it is disregarded for federal tax purposes. Thus, most LLCs
• The primary reason for forming a limited liability company is to limit the liability of the owners. • Interests in LLCs, in addition, are protected from the claims of creditors of their members. • Organizational changes related to the LLC can generally be made in the operating agreement alone (without amending the articles of organization). • Managers and managing members are also protected from personal liability regarding claims pertaining to the exercise of their management authority except for more egregious conduct (criminal or reckless acts, deriving improper personal benefits, voting for unlawful distributions, etc.). • Changes to Florida’s corporate income tax laws in the 1990s effectively eliminated the corporate tax for LLCs. • Generally, an LLC with multiple members is treated for Florida income tax purposes as a partnership (nontaxable entities that act as conduits for transferring income and loss directly to the individual partners) and a single-member LLC is “disregarde
