LLC's (Limited Liability Company) have become very popular as they generally protect their owners from personal liability and can be less complicated when compared to a corporate entity. As an LLC is a legal entity (there is not a specific tax return for an LLC entity), member(s) can make an election on how they want to be taxed. If a tax election is not made, a single member LLC will be taxed as a sole proprietor and a multi-member LLC will be taxed as a partnership.
Please note that LLC laws are state specific with each state having different requirements. Please review your state laws prior to setting up.
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1 comment:
Well said.
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