| LLC's are Good For Business! |
|
| Forming a business as a
Limited Liability Company has many advantages. First, LLCs have similar
liability limitation protections
of a corporation. Second, a LLC has all of the tax advantages of a
proprietorship or
partnership. Only in rare circumstances should a new business be started as a sole proprietorship, partnership or S corporation. The LLC serves most new and growing business well. You need a LLC Attorney to prepare the necessary documents and LLC Operating Agreement. |
|
| Fundamental Tax and Business Advantages |
|
| Limited Liability
Companies provide
pass-through tax treatment to the members without
taxation
at the LLC entity level. The
LLC has partnership tax treatment,
while shielding members from personal liability. Multiple member LLC's are treated as a partnership and file a US Partnership Tax Return Form 1065. Single Member LLC's can be treated as a Sole Proprietorship. The single member limited liability company is taxed on the member's 1040 Schedule C. LLC's have the advantage of protecting its members from the liabilities of debts and obligations, similar to corporate shareholders. It should be noted, however, that this limited liability has been continuously eroded, particularly in the area of environmental law, and it is not expected that limited liability companies would fare any better. |
|
| General Tax Classifications |
|
| Your LLC Attorney can help decide the best tax treatment. Most LLC's should be pass-through entities but sometimes alternative treatment (such as corporate for tax purposes) is advantageous. | |
| Call
Ronald J. Cappuccio, J.D., LL.M.(Tax) - LLC Attorney - at (856) 665-2121 More Information On LLC's |
|
 |
Limited Liability Company Taxation |
| |
LLC FAQs |
| |
Comparison of LLC's to Corporations |
| |
Businesses Suitable for LLC's |
| |
NJ Limited Liability Company Formation |
