Limited Liability Company (LLC)

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A flexible business structure, very modern in origin, that keeps the flexibility of a sole proprietorship or partnership, with the limited liability advantages of a corporation. LLCs may elect to be taxed as a corporation instead, which grants them even more flexibility. Forming a Limited Liability Company provides you with legal protection and the flexibility to either file as a partnership, C-Corporation, or S-Corporation.

LLCs are a newer form of business structure, so the implementation varies by state. While all businesses are regulated by state, there is substantially more variance between LLCs than traditional corporations or common law business types (sole proprietorship and partnerships).

If you need a complicated operating agreement, you will need to work with an attorney familiar with contract and business law. However, a simple LLC with a singular owner or a standard partnership can often operate either under the default rules of your state or a simple off the shelf operating agreement. Regardless of your tax setup, your limited liability company will need to maintain a dedicated set of financial books to establish that it is a unique entity and separate from its owner. The limited liability aspect is dependent on maintaining the legal fiction that the owner and business are separate, and proper accounting and bookkeeping is the core of that legal fiction.

We help entrepreneurs evaluate business structure options, as well as ensure that you maintain the proper record keeping systems necessary to remain in compliance with the tax authorities of your state and the IRS.

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