Benefits of LLCs
- An LLC allows flexible ownership and management.
- The operating agreement outlines everything.
- LLCs allow flexibility in management structure.
- Owners, called members, share profits and losses.
- LLCs shield personal assets from legal judgments against the business.
- Single member LLC taxes are simpler than multiple manager LLCs.
- LLCs protect owners like partners but taxes like corporations.
LLC Structure and Taxes
- Most new owners choose LLCs to benefit from disregarded entity tax status rather than corporations.
- If sued, personal assets are protected.
- An LLC can have one or multiple members.
- Most single member LLCs are disregarded entities, taxed like sole proprietorships.
- No separate tax return is filed.
- Income and expenses are reported on the member’s individual return.
- This simplifies taxes.
- LLCs give small business owners a legal way to determine how they run their businesses.
- An LLC affords its members flexibility.
CEO of an LLC
What is the CEO of an LLC called?