Comparison to Other Forms for Doing Business
Limited liability companies operate without the formalities that are required of corporations like shareholder and director meetings. Limited liability companies also offer an advantage over partnerships since LLC owners are not personally responsible for company debts unless they guarantee them. Your lawyer can help you decide which form of doing business is right for you. The federal tax rules for limited liability companies are less burdensome than those governing Subchapter S corporations. For example, any person or company may own an interest in a limited liability company while Subchapter S corporations may not have shareholders that are corporations, nonresident aliens, or partnerships. Owners of limited liability companies also have greater ability to allocate income and losses in their taxes than shareholders of a Subchapter S corporation. Your lawyer can advise how to use the tax advantages of a limited liability company.
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.
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