What is a limited liability company?
Limited liability company (LLC) is a business structure that combines some of the advantages of corporation and partnership or exclusive ownership. LLC resembles a corporation in that the personal responsibility of members for debts and judgments against corporation is limited. Like a partnership, a limited liability company may include flexible administration and tax benefits. The owners and shareholders of the limited liability company are jointly called members. LLC is usually established via the Local Administration Office by completing the required form and paying the fee. If the company owes money, has a legal judgment or submits bankruptcy, the assets of the company may be confiscated, but the personal assets of the owners are usually not endangered. Personal assets may include vehicles and houses. Since the personal ass of the members cannot be used to repay the corporation debts, the owners only lose the amount of money they have invested in LLC.
Owners and shareholders of a limited liability company may lose protection against responsibility if they act illegally or unethically. The owner of a limited liability company can be personally responsible in several different circumstances. If the owner of LLC hurts someone, he personally guarantees a loan to which LLC fails, or intentionally does something to hurt the company, could be personally responsible. Committing taxes or handling of a company like something other than a separate entity may also lead to a loss of limited responsibility.
Like a partnership, a limited liability company is not a separate entity for tax purposes. Members of the limited liability company may report the profits and losses of LLC to the personal income tax tax and avoid double taxation or paying personal and income tax. This tax arrangement is called "browsing" because business funding is going through their owners.
llc is commonly set by filling the documentsThe "Articles of Operation" with the relevant local legal entity. Most areas allow one or more individuals, companies or other LLCs to create a limited liability company. Some offices have empty operations forms that can only complete a few minutes. Different areas may have different LLC requirements. Non -profit organizations, banks and insurance companies sometimes cannot have LLC status.