FAQS About LLCs
What is an LLC?
A limited liability company ("LLC") is an entity created under state law using the same procedures as forming a C corporation.
What are the advantages of forming an LLC?
An LLC has the same advantages as a Sub S corporation exempt there is no limitation as to who may be a member and where that member may live.
How are LLC's taxed?
An LLC does not pay taxes. Taxes are paid by the members (owners) in proportion to the money they receive from the company as profits.
What are the liabilities of LLC's?
The LLC gives the member (owners) the same protection from individual liability as he/she would receive from owning shares in a C corporation or an Sub S corporation. There is the advantages of no taxation at the corporate level that one would receive as a shareholder in a Sub S corporation.