Limited Liability Companies - 1277 Words

After reading the case of Alex, Bill, Carl, and Devon’s business, me being their accountant, a type of business I would suggest them will be a Liability Limited corporation. Based on their needs LLC would be a perfect form of business for them. As their company was sole proprietorship ran by their dad, LLC offers some advantages of a corporation, as well as some advantages of a sole proprietorship. â€Å"A limited liability company, commonly called an LLC, is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.† (Nolo, 2014, n.a.) The characteristics of LLCs and a partnership company are somewhat similar as they both provide flexibility to the management and also the benefit of pass-through taxation. The Owners of an LLC are called members. As most states do not have any limit on ownership, members can be individuals, companies, other LLCs and foreign individuals. There is no li mit on the number of members in LLC. Some LLC also have only one owner, which is called a single member, and it is allowed in most of the states. Most states do not restrict ownership, and so members may include individuals, corporations, other LLCs and foreign entities† (irs.gov, 2014) There are some important factors that Alex, Bill, Carl, Devon and Xavier should know before they move forward to convert their business into Limited Liability Company. Ease and cost of formation In order to establish LLC, anShow MoreRelatedA Limited Liability Company1811 Words   |  8 PagesiA Limited Liability Company (LLC) is a business structure allowed by state statute. LLCs are popular because, similar to a corporation, owners have limited personal liability for the debts and actions of the LLC. Other features of LLCs are more like a partnership, providing management flexibility and the benefit of pass-through taxation. Owners of an LLC are called members. Since most states do not restrict ownership, members may include individuals, corporations, other LLCs and foreign entitiesRead MoreLimited Liability Companies ( Llcs ) Essay1509 Words   |  7 PagesLimited Liability Companies (LLCs) Rationale. The advent of the limited liability company in the 1990’s came about primarily to promote small business start-ups by providing substantial asset protection, simpler rules, and favorable state and local tax treatments (Millon, 2007; Riles Whitlock, 2003: Vandervoort, 2004). LLCs are also typically easier and less expensive to form and manage than a corporation and quickly became the entity of choice (Hopson Hopson, 2014). Similarities to corporationsRead MoreLimited Liability Company ( Llc )1480 Words   |  6 PagesAlternative 1. Limited Liability Company (LLC) The first alternative is a Limited Liability Company or abbreviated a LLC. â€Å"As an LLC your personal assets are protected from lawsuits and business debt, and only assets of your company can be touched by lawsuits and creditors† (Small Business – Chron.com, 2015). With a LLC you have plenty of advantages to include the benefit of always upgrading to another business organization and having the security and peace of mind of limited liability. It is also easierRead MoreLimited Liability Companies ( Llc )1687 Words   |  7 PagesLimited liability companies (LLC) in my opinion would be the best way to go to start up a business. With the ability of choosing which regime of taxation the business will identify with, protection from liability for the debts accrued by the business, no double taxation on business and member, and having the business counted as a separate entity, LLCs enjoy many of the benefits that corporations do, while being counted as a default partnershi p where new LLC laws do not cover an issue. Opening a restaurantRead MoreTypes Of Limited Liability Companies1965 Words   |  8 PagesThe Companies Act (2006) recognises a distinction between two different types of limited liability companies: A private company where the investment is largely provided by the founding members either through their personal savings or from bank loans, and a public company where the intention is to raise large amounts of money from the general public. The law assumes a closer relationship between the members in a private company than in a public company. Therefore, private companies commonly restrictRead MorePalmers Concrete Limited Liability Company1549 Words   |  7 PagesPalmer’s Concrete Limited Liability Company Palmer’s Concrete is an independent owned limited liability corporation that uses concrete to build sidewalk curves, and lay foundations for any edaphic. Palmer’s Concrete Limited Liability Company is based in the historical city of Pensacola, Florida and is located in the historical Brownsville area. The overall mission of Palmer’s Concrete is to form a foundation professionally for the moral structure of the individual, the businesses, and secure anRead MoreBenefits Of A Limited Liability Company759 Words   |  4 PagesA Limited Liability Company (LLC) is often regarded as a hybrid business structure: it mergers the protection of a corporation with the tax benefits and relative administrative simplicity of a partnership. For these reasons, it is considered an ideal business form for most small to mid-sized businesses with multiple owners. When starting a business, partners may choose to create an LLC rather than a standard partnership, thereby obtaining the substantial benefits provided by an LLC. In this structureRead MoreThe Legal Structure Of Limited Liability Company Essay834 Words   |  4 Pageslegal structure of Limited Liability Company. Facilities: I will have an office located in southern California. I will be located near the Los Angeles area. Business Structure: I am currently working on which professional organizations that I want to join. The film company will be more successful through networking. Facilities: I am currently working on what the zoning requirements are. The zoning requirements are important in picking the area for the location of my company. I am researchingRead MorePalmer s Concrete Limited Liability Company1546 Words   |  7 Pages Palmer’s Concrete Limited Liability Company Palmer’s Concrete is an independent owned limited liability corporation that uses concrete to build sidewalk curves, and lay foundations for any edaphic. Palmer’s Concrete Limited Liability Company is based in the historical city of Pensacola, Florida and is located in the historical Brownsville area. The overall mission of Palmer’s Concrete is to form a foundation professionally for the moral structure of the individual, the businesses, and secureRead MoreSole Proprietorship And Limited Liability Company1872 Words   |  8 PagesSole Proprietorship and Limited Liability Company For the past two years, Acme has been working out of the owner’s garage as a sole proprietorship. Which means there is one entity and there is no separation of the company and the owner. The sole proprietorship and the owner are one and the same meaning the business is not taxed but rather it is the owner’s income. The sole proprietorship is the least expensive to form. This type of entity has disadvantages of the owner being liable for all the