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Iowa Liimited Liability Company Definition

Iowa Liimited Liability Company
DEFINITION
The Iowa Limited Liability Company (LLC) is the newest of the major forms of business organization. A limited liability company generally is a simpler form of business than a corporation but it retains the limitation of liability of a corporation, while having the option of being taxed like a partnership. Again, such a form may be desirable to pass through business losses to individual owners. Organization and maintenance of an "LLC” is now much simpler than it used to be from a tax standpoint since it is now merely a matter of "election” to be treated as an LLC whereas in prior years tax regulations required the maintenance of certain attributes. Formation of an LLC mirrors that of a corporation with some differences including that instead of "directors,” there are "managers,” and instead of "stockholders,” there are "members.” Although the vast majority of United States jurisdictions now recognize limited liability companies, a possible disadvantage of this business form is that it is possible some jurisdictions will not recognize the business form and hence its liability limitation feature. Another potential disadvantage of this form in practice exists if a single person intends to add a partner at a later time, since changing the tax treatment of the entity may constitute a disagreeable taxable event. Again, a qualified professional should be consulted throughout the process to ensure the best form of business is chosen and maintained for your particular situation.

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I originally joined LegalShield because I wanted to get my will completed. However, I have kept my membership because of the value it provides. I feel good knowing that if I have a legal question or if I need help with a legal document, I can contact LegalShield. I would highly recommend this company, and in fact, I have referred some of my friends and family members

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SMART SIMPLE LEGAL COVERAGE STARTS HERE

Protection for your family, your business and your personal identity

terry
Terri J Lee S.
Arizona Member

I originally joined LegalShield because I wanted to get my will completed. However, I have kept my membership because of the value it provides. I feel good knowing that if I have a legal question or if I need help with a legal document, I can contact LegalShield. I would highly recommend this company, and in fact, I have referred some of my friends and family members

anthony
Anthony L.
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It was awesome! The Provider Firm that I spoke to was great and the cost of this service is great, too. My wife, kids and I have a Provider Firm in the palm of our hands. For $24.95/mo., the investment is well worth it.

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