Benefits of LLC
- A limited liability company (LLC) protects personal assets.
- LLCs prevent double taxation of owners.
- States regulate LLCs.
- The main LLC cost is the state filing fee.
- LLCs allow owners to enjoy corporate advantages while retaining tax benefits.
Drawbacks of LLC
- Disputes between members are possible.
- LLCs can be expensive to form and maintain.
- Taxation complexity can be a downside for LLCs.
- Members also owe self-employment tax.
LLC Tax Structure
What is an LLC usually taxed as?
- LLCs prevent double taxation and limit liability.
- Owners choose tax status but may face double taxation.
- If an LLC has multiple owners, it’s taxed like a partnership.
- Corporations limit liability; partnerships enable pass-through taxation.
- LLCs are hybrids, with flexibility.
Virginia Business Taxes
How much are businesses taxed in Virginia?