Limited Liability Companies (LLC)
Limited Liability Companies are a preferred asset protection vehicle of many business owners as well as real estate owners. The LLC is a non-corporate business entity that is taxed as a partnership rather than a corporation. As a result of being taxed as a partnership, an LLC is not subject to corporate income tax. Income is only taxed as personal income when you receive income or assets from the LLC. The LLC also protects the personal assets of the members and the officers of the LLC from creditors. The transfer of shares of an LLC can be greatly restricted by the operating agreement of that company. Even if a creditor obtained a membership interest in the LLC, they would only be entitled to their share of profits and would not become a voting member of the LLC unless the board voted unanimously. This provides the members greater control over both the present and future management of the LLC. The benefits of forming an LLC begin immediately upon formation and registration with the Secretary of State.
Advantages of an LLC include:
- Asset Protection
- Avoidance of double taxation
- Limited liability of officers personal assets
- Reduced paperwork no requirement to prepare annual company minutes
- Benefits begin immediately
- Continuity of Life
If you would like to arrange a discussion regarding these matters in more detail, please feel free to contact our office to discuss your objectives.