Business Formations

 

 

State laws govern formation of a limited liability company (LLC). Differences from state to state relate mostly to filing requirements. If you're thinking about forming an LLC for your new business, the structure and advantages are basically the same across all jurisdictions. An LLC is well-suited to smaller businesses, but you can form one for almost any business endeavor other than banking or insurance.

 

Limited Liability for Business Debts

Forming an LLC for your business protects you and other members from most liability for your business' debts. If an unhappy customer sues your business, any court judgment that results can't affect your personal assets. Your LLC is a separate entity from you. Typically, you're not personally responsible for its debts or liabilities.

 

Your Company Is Not Taxed

Some business structures pay taxes on their own, and then their members or shareholders must also pay taxes on any income they receive from the business. The same money is subject to taxation twice. An LLC does not pay taxes. Its earnings and losses typically pass through to its members, who can declare them on their personal tax returns and pay taxes according to their individual tax brackets. This tax arrangement is similar to that of a partnership, and the IRS will automatically treat your LLC as a partnership unless you notify the IRS otherwise by filing certain forms.

 

How We Can Help

The law surrounding creation of a limited liability company is complicated. Plus, the facts of each case are unique. This article provides a brief, general introduction to the topic. For more detailed, specific information, please contact a business lawyer.

 

 

Contact Us

If you have questions regarding Business Formation, please

contact Donaghy Lowy, LLC to schedule your free consultation.