What is LLC | What are the Advantages?
“What is LLC?” is one of the first questions that come to the mind of many people who want to form a company in the USA for the first time and who intend to structure their business. The Limited Company is a specific business and partnership structure within the United States.
- In this company structure, owners and partners are not personally liable for the company’s debts and obligations. In other words, the company loss cannot exceed the amount invested in the partnership and therefore, in case of possible bankruptcy, the personal assets of the shareholders are not at risk.
- Furthermore, LLC companies are not subject to taxation at the company level, such as partnerships and S Corporations and sole proprietorships. They are pass-through entities. Company owners and shareholders declare their business income and pay business taxes through personal tax returns.
- Many states in the United States have no limitations on LLC ownership or partnership. That is, individuals, corporations, foreign citizens and foreign entities, and even other LLCs may be the owners or partners of the LLC company. However, some legal entities such as banks and insurance companies are the exception.
- The income that partners receive from LLC companies is deducted from the company profit.
- LLCs are easier to set up than Corporations and members of LLCs have more flexibility than Corporate shareholders.
How to Form an LLC?
First of all, it should be known that LLC companies are commercial legal entities operating under state laws, and the procedures that LLC companies are subject to may vary from state to state in terms of legal regulations. That’s why the support from a legal Registered Agent during this process will make your business easier.
As Delawarefile.com, we are always ready to help with forming your company. You can reach us via phone call, e-mail or online chat.
If you have any further questions, please do not hesitate to contact us via firstname.lastname@example.org. You can also reach us at +1 (302) 803-9501. We are always glad to help you!