How To Form A Limited Liability Company
LLC incorporation offers key advantages in tax treatment, personal asset protection, ease of use and low cost annual filings and is recognized by all 50 States.
Form an LLC for only $139 - LLC Links & Articles
Guideline And Benefits Of Limited Liability Company Formation
* Getting Legal Status - All 50 States. In terms of form of incorporation options available to early stage enterprises, the LLC incorporation is acknowledged and accepted as a legal form of organization by all 50 USA states as a valid structure for business incorporation.
* Protecting Personal Assets From Judgment. Unless an event of fraud occurs, LLC incorporation establishes a buffer between you and your company's future creditors who would seek to attach or liquidate any asset in order to gain recovery of corporate obligations. Yyou'll receive the statutory protection afforded all corporations by all US states in terms of "buffering" your personal or partnership assets (bank accounts, securities, autos, real property) from the actions and future liabilities of your company's creditors, in the event of litigation.
* Flexible Ownership Rules. In terms of business incorporation comparisons with the standard C Corporation, the LLC incorporation does not issue stock, nor does it contemplate a public offering, as may be the case with the C Corporation. Your LLC incorporation functions like a partnership in terms of ownership, where members and managing members own the beneficial interests in the LLC incorporation.
* Simple Corporate Governance Rules. An additional benefit of an LLC incorporation relates to simplicity in the area of corporate governance. Unlike the Subchapter S or C corporation form of incorporation which require annual meetings and written minutes, your LLC incorporation does not carry the statutory burden of meetings and minutes, therefore saves management and member-owners in time and legal expense. A benefit of incorporation to the S corporation is that it can more easily sell stock than can the LLC incorporation enterprise, however the S corporation is limited to 75 shareholders whereas the LLC incorporation is not restricted in its ownership structure.
* Tax Benefits As Pass Through Vehicle. Another benefit of incorporation as an LLC incorporation relates to taxation benefits. Whereas the C corporation is fully taxable at the state and federal level on corporate earnings, the LLC incorporation stands as a legally constructed "pass through" vehicle, like the Subchapter S form of incorporation or a limited partnership form of incorporation, where corporate earnings are distributed directly to member-beneficiaries who individually pay tax at the personal level, thereby avoiding double taxation.
* Additional Earnings Distribution Benefit. A related benefit of incorporation regarding earnings distribution is that your LLC incorporation is not required by law to distribute earnings on a pro rata dollar per share basis as is required for a C corporation, rather your LLC incorporation via member resolutions can instruct the managing members to declare and to pay what profit distributions are necessary to further the enterprise.
* Taking The First Steps Towards Incorporation. Incorporation information necessary to initiate the process includes the requirement that you produce a written abstract or summary of your LLC corporate purpose, which is provided to your incorporation services advisor who will transpose this summary into your operating or formation documents supporting your filing.
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