Limited Liability Company - 2007/05/10 22:17
An LLC is a hybrid of a corporation and a partnership and is rapidly becoming the most popular structure for small businesses due to its flexibility and its low cost to create and maintain, while still offering most of the advantages of a corporation. The ownership percentages, profit and loss distributions, and voting powers of each member are determined by the LLC Articles of Organization, rather than by stock ownership. An LLC can choose to be taxed like a partnership or S Corporation with profits and losses flowing through to the owners’ tax returns, or taxed like a C Corporation, filing its own return. The owners and any officers and directors are protected from the liabilities of the company, as in a corporation. An LLC is generally subject to franchise tax, though this varies from state to state.
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