}
?>
|
What is a Limited Liability Company (LLC)? |
A Limitied Liability Company, or LLC, is a business entity that takes the protection that a corporation and a partnership gives you, giving you the best asset protection.
An LLC has become extremely popular in recent years. Like a corporation, an LLC has a legal existence separate from its owners, and the owners and managers are not personally liable for the company's debts and obligations.
With an LLC, your liability is limited to the amount of your initial capital contribution. Like a partnership or an S-corporation, an LLC is automatically treated as a pass-through entity for tax purposes. Your LLC does not pay taxes. The LLC's income "passes through" to you personally and you are taxed on an individual basis.
Key elements of a Nevada Limited Liability Company include:
- A creditor of the owner of a Nevada LLC cannot seize the assets of the LLC.
- A single-member Nevada LLC is automatically disregarded as an entity separate from its owner and includes all of its income and expenses on the owner's 1040 tax return.
- A Nevada LLC with two or more members is treated as a partnership.
- There is unmatched contractual flexibility with a Nevada LLC. Nevada law provides rules only on matters on which the members have failed to agree.
- Personal liability is limited for owners and managers to the amount of their investment in the company, just like a corporation.
- Non-U.S. owners of a Nevada LLC with no U.S. source income pay no U.S. taxes whatsoever.
|
|
|
|