If you wanted to start your own business, would a LLC be better than an Inc?

Similar questions: wanted start business LLC.

See below for details. form-a-corp.com/form-an-llc_QA.phpWhat are the Advantages of an LLC? Pass-Through Taxation LLC’s allow for pass-through taxation, allowing earnings of an LLC to be taxed only once.

The earnings from an LLC are treated in a similar manner as earnings from a partnership, sole proprietorship and most S corporation. Limited Liability:The member’s liability is generally limited to the amount of money which the member invested in the LLC. As a result, the members of an LLC receive the same limited liability protection as do shareholders of a corporation.

Flexible Organizational Structure LLC’s are generally free to establish any organizational structure agreed upon by its members. Thus, profit interests may be separated from voting interests. What are the Disadvantages of an LLC?

The possibility of losing pass-through taxation if the LLC is not properly structured. More paperwork and documentation is needed than in an ordinary partnership. Other advantages:• Same pass-through features of an S corporation which avoids double taxation of profits.

• Flexibility of a partnership without the restrictions of an S corporation. • In comparison to a limited partnership, the Limited Liability Company (LLC) offers limited liability protection for all members, whereas the general partner in a limited partnership has unlimited liability. Also, if any limited partner in a limited partnership participates in management, the limited partner is exposed to personal liability, whereas a Limited Liability Company (LLC) member who participates in management is not exposed.

• Contribution of appreciated property to an S corporation is a tax-free event if the contributing shareholders control 80% or more of the stock after the contribution. A contribution of appreciated property to an Limited Liability Company (LLC) as a partnership is tax free regardless as to how much control the contributing partner has. • Liquidation of an S corporation interest is a taxable event and is treated as if the corporation sold the liquidated assets at their fair market value to the shareholder.

Liquidation of a Limited Liability Company (LLC) as a partnership is generally a tax-free event. http://www.taxdeferrals.com/llc.htmThe financial and tax advantages of Limited Liability Companies (LLC’s) have been put to other specialized uses:Asset protection. First time business owners were first unincorporated proprietorships.As they began to realize the possible loss of their personal assets, or they started to get in trouble, only then!

Did they consider other types of ownerships. The Limited Liability Company is the most efficient way to do business.NO ASSETS or BUSINESS(es) should ever be in their personal name(s). "Own nothing, control everything-else.

" Personal creditors cannot step in your shoes to take control of your LLC. Your creditor is precluded by law and with unwanted tax consequences. See section on "what's an LLC" Another asset protection technique is to shield your personal and other valuable assets by having your Limited Liability Company own a "blanket mortgage" on all your assets.

That is, "you owe money" to your LLC. Alternatively, don’t put all you eggs in one basket, have multiple LLCs for multiple type risks or multiple layers of legal entities, depending on your risk. Real Estate Investments.

LLC’s flexibility allow unlimited number of members. LLCs may register their shares with the Securities and Exchange Commission as publicly traded securities i.e. (REITS) Real Estate Investment Trusts under the LLC umbrella at far less costs and with less administrative complicationsThe United States is the "OFFSHORE" for foreign entrepreneurs.

Foreign investors consider the United States as their "offshore" tax-free tax haven jurisdiction due to favorite treatment of their investments and tax-free status afforded to them. Example: There's NO Capital Gains Taxes on securities purchased in the United States and sold by foreign investors. Estate Tax Planning, elimination of probate jail.

The LLC is an ideal way to transfer wealth amongst family members. The older generation (parents) retain control of the assets or business by eliminating third party interests and restricting membership, while eliminating estate and gift tax consequences. The LLC is a much more practical device for this purpose with no mandatory distributions to the younger generation (children).

Creditor transactions. LLCs have a distinct advantage when it comes to borrowing money from traditional institutions such as a bank or doing business. Charitable gifting.

Fund raising and charitable giving is better facilitated through an LLC. Member gifting is passed through to their individual income tax returns, federal form 1040. Multistate operations and professional practices are enhanced by the use of an LLC.

LLCs have long been recognized as traditional legal business entities. A trust is not afforded such luxury, because no-one knows what's the nature of it's business purpose. A trust is a private business contract between the grantor, the trustee, and the beneficiaries Sources: http://www.taxdeferrals.com/llc.htm .

Corp if you want to sell, LLC if you don't If the Exit Plan is to go IPO or sell, the most logical entity to use is a “C” type corporation. A limited liability company (“LLC”) is best for a small, non-emerging, cash-cow type of business. If one wishes to “emerge,” the LLC is not the way to go because it robs the business of the tax shelter of the net operating loss carryforward (“NOL”) when the business becomes profitable.In an LLC, the loss goes to the owners through the pass-through of the loss.

The NOL can be a valuable asset at a time when the business is expanding and needs the shelter to avoid the cash drain of tax payments. Sources: http://www.techventures.org/resources/documents/HowToofEarly2.doc .

I already have an LLC for a small business and would like to start another of a different type. Can I get another LLC? " "I want to start an online business(food).

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" "which is the best business to start? " "How can I discontinue my LLC, the business plan fell through" "What's a good company to work with to start a small E-business?

I already have an LLC for a small business and would like to start another of a different type. Can I get another LLC?

I want to start an online business(food). Where do I start?

Have you ever had an idea for a really strange small business that you'd like to start, but you thought it just...

For a small retail business, which is better a llc or s-corp as far as taxes are concerned.

How can I discontinue my LLC, the business plan fell through.

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