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Can LLC have 2 directors?
- An LLC allows flexible ownership and management.
- Most new owners choose LLCs to benefit from disregarded entity tax status rather than corporations.
- The main LLC advantage is limited liability protection for personal assets from debts and lawsuits.
LLC Structure and Benefits
- LLCs allow flexibility in management structure.
- Many are member-managed – owners handle day-to-day operations.
- Most single member LLCs are disregarded entities, taxed like sole proprietorships.
- Income and expenses are reported on the member’s individual return.
- This avoids double taxation of C Corporations and simplifies filing.
- The operating agreement outlines everything.
- LLCs shield personal assets from legal judgments against the business.
- If sued, personal assets are protected.
- Owners, called members, share profits and losses.
- An LLC can have one or multiple members.
- Single member LLC taxes are simpler than multiple manager LLCs.