There is a great deal of information on limited liability corporations. This information will help you towards deciding if making your business a LLC is in your best interests. The basic premise of a LLC is a mixture between a partnership and a S corporation.
Some more information on limited liability corporations includes calling the owners members as opposed to shareholders or partners, and you can have any number of members. These members don’t even have to be individuals, but other businesses and LLCs.
A few other differences that come up while reading information on limited liability corporations make it apparent how popular an option forming a LLC is. The fact that a LLC is held separate from the member’s personal assets makes it a safe option for keeping business liability out of personal affairs. There are also a number of ways to set up profit sharing, unlike some of the more rigid arrangements in other types of corporations. You are also not required to keep minutes or have records of formal resolutions.
One piece of information on limited liability corporations that many people focus on is the type of taxation that the LLC is given. The method of taxation that a LLC has to deal with is called flow through taxation, which means profits and losses ‘flow through’ the company to each of the members.
There is some negative information on limited liability corporations, however. One pertains to how the LLC is dissolved, which happens if a member either dies or goes bankrupt. This is in direct contrast to other types of corporations, which remain in effect indefinitely. There are also some problems involves in taking a LLC public, and in some paperwork that having your business set up as a LLC entails.