LLC

Limited Liability Company

A limited liability company is a corporate structure in the United States where the owners are not personally liable for the company's debts or liabilities. 

 

Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.

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THE BASICS

Learn the basics of starting a limited liability company

PROS & CONS

What are the pros and cons o limited liability?  Learn more

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FUNDING

Learn more about small business funding options

WHAT IS AN LLC?

LIMITED LIABILITY COMPANY

A limited liability company is the US-specific form of a private limited company. It is a business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation..  

 
 
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LIMITED LIABILITY COMPANY

PROS & CONS

PROS

MORE FLEXIBILITY

  • A limited liability company must file articles of its' organization with the state, it has a more flexible structure than a corporation.

LIMITED LIABILITY

  • An LLC protects owners and shareholders from personal liability against debts and judgments.

TAX OPTIONS

  • Ann LLC can choose if it wants to be taxed as a sole proprietorship, partnership, S corporation or corporation.

FEWER COMPLIANCE OBLIGATIONS

  • In most states, and LLC does not need to have an annual meeting or a board of directors and bookkeeping is easier as there is less paperwork.

CONTINUED BUSINESS ABILITY

  • An LLC is an entity of its' own and can continue to do business after the owners sell or pass away.

LIMITED INVESTOR INPUT

  • You can allow limited investor input.

CONS

PASS THROUGH TAXES

  • Pass through taxes means that profits and losses are reported on each owners or shareholders individual tax return, whether or not they receive dividends.

  • For this reason, an LLC may be more suitable for a sole proprietor as partners may not want to be responsible for one another's expenses or losses.

PARTNERSHIPS

Learn more about the basics of starting a partnership

ARE YOU READY?

View checks & balances startup lists to learn if you're ready to start a business

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CORPORATION

Thinking big?  Learn the basics of starting a corporation

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