Not yet registered? Create a OverBlog!

Create my blog

What is a LLC?

When a person decides that they want to become self-employed and form a business, they must decide on the kind of business structure they want. Some of the most well known business structures are a sole-proprietorship, partnership, or a corporation, but LLCs are increasing in popularity. A LLC is also known as a limited liability company, and it’s a cross between a corporation and a partnership.

Advantages of a Limited Liability Company

A limited liability company is sometimes viewed by many people as a combination between a corporation and a partnership. Membership
The owners of a limited liability company are not considered to be partners or shareholders - they are considered to be members. A limited liability company can have an unlimited number of members, and the members can be individuals, corporations, or other limited liability companies.
Tax advantage
As a limited liability company, any losses, profits, or expenses go to each individual member of the company. So a member of a limited liability company will avoid paying taxes twice - he/she will be exempt from corporation tax and individual tax.
Profit distribution
Limited liability companies have the flexibility in that they can distribute their profits among members as per their own regulations, without having to abide by the rules of any external organisations.
Whereas a partnership or other companies have to distribute their profits 50/50, a limited liability company has the flexibility to distribute profits in any way they would like to, as long as the members agree to the profit distribution.

Disadvantages

Life expectancy
Limited liability companies do not stay around forever, because when a member of a limited liability company passes away or files for bankruptcy, the limited liability company is dissolved. Other business structures can live and stay around forever. Complexity
Forming a business structure such as a partnership or sole proprietorship, has less paper work involved than a limited liability company. To form a limited liability company, there are articles of organisation and an operating agreement that needs to be drawn-up and filed. These documents can be drawn-up by a lawyer or any member of a limited liability company. State rules
A person thinking about starting a limited liability company should conduct further research, because most states have their own rules regarding formation of a limited liability company.

Same category articles Consumer culture

Where can I find discount books

Where can I find discount books

It is becoming easier and easier to find cheap and discounted books and so people avoid having to pay the full price for books. In this guide, we shall look at some of the ways in which this can be done, and the best places to obtain cheap books.
How to earn cash for surveys

How to earn cash for surveys

Discover the two kinds of surveys that you can take in order to earn money quickly. What about the legitimacy of an online survey? How do you tell? What are the questions to ask before you sign up? Learn the answers and more through the following article.
How to register a trademark?

How to register a trademark?

Registering a trademark can be one of the most important steps you take to safeguard your idea, upon which you have founded your company or business. A lot of investment in terms of time and money goes into making your ideas possible, so make sure that you give it the proper amount of protection when it comes to finding legal protections and trademarks.
Kohl's Department Stores: The facts

Kohl's Department Stores: The facts

In Kohl’s Department Stores, one of the biggest US department stores, you can find almost everything! From clothing, accessories, swimsuits, underwear, jewelry and shoes to luggage, home electrics, furniture and toys. Read the following article and find out all the interesting facts that you need to know about Kohl’s Department Store, including all the products you can find at Kohl’s and how to shop.