Free Accounting and Tax Help

Get free accounting advice and save money on your taxes

-------------------

Tax Preparation & E-File

Tax Forms

Small Business Tax and Accounting Resource Center

Limited Liability Company - LLC Explained

LLC Explained

The LLC is a common choice of entity when establishing a business. Many feel the primary advantage is limited liability for its members and pass through of income. There can be more than one member partner. The member manager usually runs the day to day operations of an LLC an must follow the operating agreement set up when the LLC was formed.

An LLC many have a single member who usually files a Form Sch C with their individual tax return. An LLC with more than one member is required to file a Form 1065 at year end and is taxed similar to a partnership.

Free Accounting and Tax Help for Individuals and Small Businesses

Accounting and Tax Help

LLC Explained

The LLC is just one of many choices when forming a business. Depending upon certain criteria, such as number of partners, type of business, and growth factors, you need to look at all the different entity choices before making a decision. Is an S corporation more suitable for you or is a regular corporation going to save you in taxes?

Discuss all the different types of companies with your lawyer and tax accountant. Have them explain an LLC advantages and disadvantages. Also learn the tax makeup of an LLC and how it will effect your personal tax return.

Find the answers to all your LLC questions. Don't be frustrated. Ask the Tax Expert to get all LLC answers.