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An LLC is an unincorporated business organization. Thats why they call it forming a LLC as
opposed to incorporating a business. LLCs have all the benefits of a corporation when it comes
to limiting the business owner’s liability. The advantage of an LLC is the management flexibility it
allows, and the potential tax benefits.
LLCs allow a business to have the limited personal liability of a corporation as provided by state
law, while being treated as a partnership for purposes of Federal tax laws.
Limited Liability Companies generally can transfer ownership interests in the business to make
sure the business is classified as a Partnership under federal tax law. The membership Interest
transfer agreement is nothing more than a Bill of Sale. An LLC usually has a limited existence in
that it will end after a specified number of years or upon the occurrence of some specified event.
This requirement is intended to help the business qualify as a Partnership for purposes of tax law.
Being taxed as a Partnership makes the LLC structure particularly attractive because it gives the
owners a great deal of flexibility in allocating profit and loss. Operating as a Limited Liability
Company also gives the owners greater flexibility in determining who manages the business and
what each owner’s particular duties are in that regard.
Limited liability companies, or LLCs, are becoming more and more popular, and it's easy to
understand why. They combine the personal liability protection of a corporation with the tax
benefits and simplicity of a partnership. In addition, they're more flexible and require less on-
going paperwork than corporations. We can help you quickly and easily set up a new LLC, or
form a LLC for your existing business.
There are no tax consequences of converting a Limited Partnership or a General Partnership to
an LLC. However, converting a C or S Corporation into an LLC is treated as a dissolution for the
corporations, and taxable if the corporation holds appreciated assets.
opposed to incorporating a business. LLCs have all the benefits of a corporation when it comes
to limiting the business owner’s liability. The advantage of an LLC is the management flexibility it
allows, and the potential tax benefits.
LLCs allow a business to have the limited personal liability of a corporation as provided by state
law, while being treated as a partnership for purposes of Federal tax laws.
Limited Liability Companies generally can transfer ownership interests in the business to make
sure the business is classified as a Partnership under federal tax law. The membership Interest
transfer agreement is nothing more than a Bill of Sale. An LLC usually has a limited existence in
that it will end after a specified number of years or upon the occurrence of some specified event.
This requirement is intended to help the business qualify as a Partnership for purposes of tax law.
Being taxed as a Partnership makes the LLC structure particularly attractive because it gives the
owners a great deal of flexibility in allocating profit and loss. Operating as a Limited Liability
Company also gives the owners greater flexibility in determining who manages the business and
what each owner’s particular duties are in that regard.
Limited liability companies, or LLCs, are becoming more and more popular, and it's easy to
understand why. They combine the personal liability protection of a corporation with the tax
benefits and simplicity of a partnership. In addition, they're more flexible and require less on-
going paperwork than corporations. We can help you quickly and easily set up a new LLC, or
form a LLC for your existing business.
There are no tax consequences of converting a Limited Partnership or a General Partnership to
an LLC. However, converting a C or S Corporation into an LLC is treated as a dissolution for the
corporations, and taxable if the corporation holds appreciated assets.
When to use an LLC
Any Partnership
Owning real estate for Investments purposes. See Real Estate Program
Have several entities that own the business
Want taxes on LLC income to pass to the individual members.
Any Partnership
Owning real estate for Investments purposes. See Real Estate Program
Have several entities that own the business
Want taxes on LLC income to pass to the individual members.
What is a Limited Liability Company?