A limited liability company is a business structure that allows pass-through taxation while limiting the liability of its owner.
- Pass-through taxation – the LLCs income and losses are “passed through” to the owners. The LLC is not taxed at the company level but on the individual’s personal tax return.
- The owners/members have limited liability for the debts and liabilities of the LLC.
- LLCs offer the members more flexibility in how the company will be structured.
- There is much less annual filing requirements and administrative paperwork for LLCs as there is for corporations.
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