What is a LLC?
A LLC or a Limited Liability Company is a separate legal entity (business structure) utilized for the purposes of forming a business. An owner of a LLC is frequently referred to as member. In “corporate” lingo, this is the equivalent of a shareholder. A LLC is not a corporation! A LLC is frequently referred to as a hybrid of a corporation and a partnership. The members of a limited liability company are shielded from personal liability and profits and losses may pass directly to the members without taxation of the LLC itself. That’s another way of saying that a LLC is not double taxed. In other words, income is taxed at the member level. As mentioned above, a LLC offers two primary benefits. First and foremost, a LLC provides the members protection from personal liability. Additionally, a LLC provides certain tax benefits. That is, a LLC allows for pass through taxation. A LLC is similar to a corporation because it has a) limited liability; b) free transferability c) continuity; d) cen
