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The tax benefits are that if you are an independent contractor you can write-off expenses such as: gas, commercial vehicles, business equipment, and other fees and bills that an accountant could assist you.
Also, there are protections from court liens and judgements against you if you have the company in an LLC. For example, if someone slips on a patch of ice on your property and decides to sue you, it is a good idea to have a separate LLC for every asset so the person suing may only get at the maximum the value of that asset. Your home, car, and anything else in your personal name would not be at risk.
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What is the method used for forming an LLC?
The method used for forming an LLC, or a limited liability company, is by creating a proper name for the LLC, finding a location for the LLC, and create the LLC while abiding all rights and regulations of company ownership.
What are some steps for forming a LLC?
Some steps for forming an LLC include Selecting a Name, Selecting a Registering Agent and Determining ownership of the LLC. You may also want to order an LLC stamp for your company.
Main types of business?
There are two basic types of businesses: LLC and a Corporation. They both have their advantages but the most popular business type is forming an LLC which can be found on sites like http://legalzoom.com and http://ellcoperatingagreement.com. It is mainly popular for its pass-through taxes and the easiness to create.
Is forming a llc considered difficult?
"Forming a limited liability company or llc for short, is not that difficult. However one must fulfill the criteria and steps which are needed to form an llc. First one must choose a name for their business which hasn't already been issued, then you would file the necessary paper which can cost anywhere from $100-$800. Secondly make a llc operating agreement and depending on where one lives you may need to declare your intentions on forming a llc. Lastly attain any permits or licenses which are needed."
What kind of application is needed to start an LLC?
You need a name registery form and to file papers with the state. Read more at http://smallbusiness.findlaw.com/business-structures/llc/forming-llc-checklist.html
Where can I obtain information on how to start an LLC?
There are lawyers who specializes in company forming. I would go to one of them to discuss whether an LLC is the right option for your company or whether there might be a better one for you.
How do you form a LLC in Colorado?
There are a few simple steps to forming a LLC in Colorado. First off you'd need to choose a name for your LLC, then you'd need to file articles of organization, after that you'd need to appoint a registered agent, and 4 other steps.
Where can I find information on how to form LLC parterships?
You may find information about forming an LLC at the library, possibly a local legal aid society, or a group that supports businesses, such as the chamber of commerce. You may also find most of the information you need by doing an internet search. A couple of useful web pages are: http://smallbusiness.findlaw.com/business-structures/llc/forming-llc.html and http://www.legaldocs.com/partn-s.htm
How can one protect their assets through incorporate LLC?
When one incorporates their business they are forming a LLC, a limited liability corporation. By doing this, a business owners personal assets are protected from business debts or obligations.
Where can I get the forms I need to form an LLC?
You can fill out the form for FREE and you will not be charged for the formation of the LLC. You only need to pay for state fees. businessregistration.org/free-llc They can help with other LLC related compliance for a fee, but it's up to you if you want to use them for the other services they will form the LLC even if you don't use them for the other compliance services.
What is one advantage of forming a limited liability company instead of a corporation?
Forming a LLC will provide the company with a few benefits over a corporation. This can include protected assets, flexible structure and fewer restrictions. But a LLC also has higher ongoing expenses and is more difficult to transfer ownership, so it has some downside.
Can your single member real estate llc rent to your single member business llc?
Yes. Although a single member LLC is a "disregarded entity" for tax purposes, in other respects it is treated as any other LLC. The fact that one person owns the membership interests in both LLCs does not prevent them from forming an agreement that is valid between them.
