WHAT IS AN LLC?

1. US LEGAL CORP A LIMITED LIABILITY COMPANY

2. WHAT IS AN LLC? LLC is an abbreviation for limited liability company. It is a corporate arrangement that offers a limited liability business similar to a corporation), but it is easier to create and easier to sustain the structure. It also provides the corporation with for tax purposes, a pass-through treatment of profits close to that of a sole proprietor or a partnership.

3. Why do we need a Limited Liability company? The LLC provides protection to the LLC owners by limiting the owner's personal liability. Generally, this means that business debts owed by the business, and other claims on the business, including liens and lawsuits, are limited to the assets of the business itself.

4. OWNER’S LIMITED LIABILITY This is where the term "limited liability" in LLCs originates from. The LLC gives the owners of the LLC insurance by restricting the personal liability of the owner. Generally, this suggests that corporate obligations owed by the company and all business claims, including liens and litigation, are confined to the company's own properties.

5. PASS-THROUGH TREATMENT OF INCOME TAXES An LLC is not considered to be a separate entity for income tax purposes, unlike a corporation. On their personal income tax returns, the owner(s) of the LLC declare their operating performance, whether benefit or loss, much as they would as either a sole proprietorship or partnership. There is no return expressly filed for the LLC.

6. HOW TO SET UP AN LLC • Setting up an LLC, particularly compared to setting up a company, is a fairly simple method. Actually, it's a multistep process that looks like this: • Choose a business name • Create and file Articles of Organization • Appoint a Registered Agent • Payment of required fees • Publish a notice of intent to create an LLC • Create an LLC Operating Agreement

7. HOW AN LLC CAN BENEFIT A SMALL BUSINESS The most obvious benefit of creating an LLC is probably the security of your personal assets by restricting the burden to the company's own capital. The LLC will cover your personal assets from claims against the firm, including litigation, in most cases. This allows the sole proprietorships and partnerships of small business owners to receive limited liability insurance similar to that provided by companies, but without the expense and difficulty that corporations bring. For instance, you would not need to file a separate tax return for your company under an LLC. Your income and expenses will continue to be listed either on Schedule C for sole proprietorships, or on Schedule E for partnerships, on your individual income tax return.

8. HOW AN LLC CAN BENEFIT A SMALL BUSINESS The most obvious benefit of creating an LLC is probably the security of your personal assets by restricting the burden to the company's own capital. The LLC will cover your personal assets from claims against the firm, including litigation, in most cases. This allows the sole proprietorships and partnerships of small business owners to receive limited liability insurance similar to that provided by companies, but without the expense and difficulty that corporations bring. For instance, you would not need to file a separate tax return for your company under an LLC. Your income and expenses will continue to be listed either on Schedule C for sole proprietorships, or on Schedule E for partnerships, on your individual income tax return. To Read More Click on US Legal Corp

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