A LLC provides a business owner the protection of a corporation i.e. the owner of a LLC is considered separate from the business and will generally not be held personally liable for the business’s actions. Litigation, debts and other liabilities to the business is not generally passed on to the members of the LLC. Please note that there a few exceptions to this rule and sometimes the actions of the members or the way in which the LLC is managed and operated can pierce this veil of protection in which case, the protection can be lost.
A LLC can have as little as one member (single member LLC). Unlike a partnership that requires at least two parties, a LLC can have only one member.
A LLC is less restrictive and easier to manage than a C-Corp or S-Corp. There are no requirements of annual meetings, board of directors and some of the other restrictions that are imposed on a corporation.
The LLC allows for pass-through taxation. The business does not pay any business tax rather taxes are paid by individual members with their taxes.
There are no restrictions on number of owners or who can be owners.
A LLC can be managed by the owners or by managers.
BY: admin
