What is a LLC?

Answer 1

LLC stands for "limited liability company." The LLC is a relatively type of new business entity in the United States. Its owners have limited liability for the entity's debts and obligations, similar to the status of shareholders in a corporation, but its income and losses are normally passed through to the owners as if it were a partnership.

Answer 2

An LLC is a limited liability coporation which is, in essence, a partnership. The liability of each partner is limited to the amount they have invested in the company. If a partner invested 50% of the funding (or in some cases this is time invested), that partner is only liable for 50% of the debt of the company if it goes under or closes. There can be only two partners or a thousand partners. But each partner carries a risk equal to their investment.

Answer 3

LLC is a Limited Lialibility Corporation where in the lialibility is limited upto the amount of its paid up capital only.

Forming an LLC is an excellent way for business owners to shield their personal assets. LLCs are also very beneficial to real estate investors. LLCs are one of the best means for holding real estate and other appreciating assets. Two major reasons for forming an LLC are:

The two major reasons for forming a corporation are:

• Personal Liability Protection
• Flexibility

Answer 4

A limited liability company (LLC) is a relatively new business entity in the United States. The first modern LLC statute was adopted in Wyoming in 1977 and by 1997 every state allowed the creation of a limited liability company. Its basic features are

* its owners have limited liability for the entity's debts and obligations, similar to the status of shareholders in a corporation or limited partners in a limited partnership, and * its income and losses are normally passed through to the owners as if it were a partnership (or sole proprietorship, in the case of a single member LLC owned by an individual).

An LLC is probably most like a limited partnership, except that a limited partnership, unlike an LLC, is required to have at least one general partner liable for the debts and obligations of the partnership.

Answer 5

Limited Liability Corporation or Limited Liability Company How to Form an LLC

A limited liability company, or LLC, is similar to a partnership but has the legal protections of personal assets that a corporation offers without the burdensome formalities, paperwork and fees. The exact rules for forming an LLC vary by state.

All new LLCs must file so-called articles of organization with their secretary of state's office. This is usually just a short form that asks for the names of the LLC and its members and their contact information. The filing fee can range from $30 to $200. A few states also have other registration requirements. You can find the rules and fees involved at your secretary of state's Web site. Or use FindLaw's online guide to state corporations offices.

Though it's often not required by law, you should draft an operating agreement for your LLC that spells out the details of the business arrangement, including members' percentage ownership, roles, rights and responsibilities. Having such an agreement can help protect the LLC structure if it's challenged in court and prevents you from having to default to state operating rules.

You don't have to hire a lawyer to set up an LLC, since state requirements are usually self explanatory. But it's a good idea to have one read over paperwork and your operating agreement to make sure your interests are protected.

Even though most states don't require any annual paperwork or administrative procedures, you should document major business proceedings and lay out some formal procedures - like one meeting a year - to help protect your LLC status.

Some states charge annual fees and taxes that can diminish the economic advantage of choosing to become an LLC. Among LLC advantages: pass-through taxation - meaning the profits and losses "pass through" the business to the individuals owning the business who report this information on their own personal tax returns. The result can be paying less in taxes, since profits are not taxed at both the business level and the personal level. Another plus: Owners aren't usually responsible for the company's debts and liabilities.

California, for instance, charges an annual $800 LLC tax along with a $900 to $11,760 annual fee based on a business's total annual income exceeding $250,000.

If you are beyond any doubt ready and determined to form a California Limited Liability Company. The truth is the best route of action is to get your company a group of professionals who concentrate in the formation of LLC and corporations. This is the case if you and your company are new to the whole industry. This is a serious matter because if your company makes mistakes in the process, it will have a massive impact on the business. However, if you think that you are fine by yourself, then you must research well on how the papers are processed. Here are some steps on how to form a California LLC that will surely guide you along the way.

1. Check if the name is still available.

The company will have to research the availability of its preferred name. In cases wherein another company is carrying the same name, prepare alternative names to make a separate distinctiveness. You also have to remember to incorporate the words "Limited Liability Company" or "LLC" in the company's name.

2. Prepare the required forms and choose the method of how you want your papers to be processed.

You have to download the required forms and then fill them out properly. You also have to complete the "Articles of Organization". The next thing is to decide which method of processing do you want for your papers. Then wait for it to be processed and be approved.

3. Negotiate and execute an operating agreement.

All California LLCs are required to have an agreed upon Operating Agreement. It is important that you carry out an organizational meeting so that the agreement can be adopted. Your company has six options.

4. Submit an application for Employer Identification Number (EIN).

If you want to apply online for an EIN then you can search for the Internal Revenue Service's website. However, you need to be knowledgeable with what you are doing because the IRS will ask significant questions about the company. This is imperative because a California LLC can be taxed in many ways.

Answer 6

A Limited Liability Company, or an LLC, is a relatively new business structure, that first appeared in Wyoming in 1977, and is now recognized by every State's statute and the IRS. An LLC is neither a partnership nor a corporation, but a distinct type of business structure that offers an alternative to those two traditional entities by combining the corporate advantages of limited liability with the advantages of pass-through taxation usually associated with partnerships.

Limited Liability Companies are becoming more and more popular, and it is easy to see why. In addition to combining the best features of partnerships and corporations, LLCs avoid the main disadvantages of both of those business structures. Limited liability companies are much more flexible and require less ongoing paperwork than corporations to maintain them, while avoiding the dangers of personal liability that come with the partnership. Some examples of famous LLCs may surprise you - both Amazon and Chrysler are organized as limited liability companies.

Ownership of an LLC Owners of an LLC are called "members". Since most states do not restrict ownership, members may be individuals, corporations, and other LLCs - domestic or foreign. LLCs can generally have an unlimited number of members. Most states also permit, so-called, "single member" LLCs, those having only one owner.

Members in an LLC are analogous to partners in a partnership or shareholders in a corporation, depending on how the LLC is managed. A member will more closely resemble a shareholder if an LLC chooses to be managed by a manager or several managers, because then those members who are not managers will not participate in day-to-day management of the company. If an LLC does not choose to utilize managers, then the members will closely resemble partners because they will have a direct say in the decision-making of the company.

Single- vs. Multiple-Member LLC An LLC owner by more than one individual or entity is called a Multiple-Member LLC. All states also permit Single-Member LLCs - those having only one owner (member). By default, a Single-Member LLC is taxed as a sole proprietorship (in other words, treated as "disregarded entity" by the IRS), while a Multiple-Member LLC by default is taxed as a partnership.

Advantages of Forming LLC LLC is a relatively new type of business structure that combines the best features of the corporation with those of the sole proprietorship or partnership. An LLC has many advantages and benefits which cannot be enjoyed together in any other type of business.

Personal Liability Protection: An LLC is an entity separate from its owners. Being a legally distinct entity, the personal assets of each owner (such as a home, a car or a personal bank account) are not reachable by business creditors. An LLC member's liability is generally limited to the amount of money that person has invested in the LLC. Thus, LLC members are offered the same limited liability protection as the shareholders in a corporation. What Is Limited Liability and Why It Is Important?

Tax Advantage: LLCs allow for pass-through taxation, and that advantage is one of the biggest reasons for the recent popularity of the LLCs. Pass-through taxation means that earnings of an LLC are taxed only once, basically being treated like the earnings from a partnership, a sole proprietorship or an S-Corporation. While neither partnerships nor sole proprietorships also offer limited liability protection, an S-Corporation comes the closest to an LLC. However, an S-Corporation is a much more restrictive business structure that is harder to maintain. The Surprising Tax Advantages Of Starting An LLC Ease of Transfer: With an LLC it is easy to sell the ownership interests to third parties without disrupting the continued operation of the business. As a comparison, selling interests in a sole proprietorship or general partnership requires much more time and effort. An owner must individually transfer assets, business licenses, bank accounts, permits and other legal documentation. Ownership transfers in S-Corporations are also burdened with many restrictions. No Ownership Restrictions: LLCs have no restriction on the number or types of owners. By comparison, S-Corporations cannot have more than 100 stockholders, and each must be a resident or a citizen of the United States. None of these restrictions apply to an LLC. Easier to Raise Capital: LLCs allow for many ways to raise capital. An LLC can admit new members by selling membership interests or even create a new class of members with different voting or profit-sharing characteristics. Greater Credibility: As a registered LLC, a business will enjoy legitimacy and greater credibility when dealing with other companies, banks and potential partners or investors than would, for example, a sole proprietor. An LLC is recognized as a legitimate company and not as an individual engaging in business.

Answer 7

what you meant by LLC? brief about LLC to me

Answer 8

the bottom of coverage

Answer 9

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