| tion_start --> | | | | taxation. This means that the profits from the business |
| An LLC or limited liability company is a form of | | | | are only taxed once and owners do not have to pay |
| business registration that allows the owners of a | | | | both corporate and personal income tax on any |
| business to protect themselves from some of the | | | | monies earned through the business. |
| liabilities of being in business and at the same time | | | | The limited liability under an LLC makes a provision that |
| receive some of the tax benefits of other more | | | | limits the liability of owners and operators to the |
| elaborate business registrations like an incorporation or | | | | amount of money that they have invested in the firm. |
| partnership. In order to register a business as an LLC | | | | Any debts or responsibilities above those amounts are |
| or limited liability company the business has to prepare | | | | the liability of the corporate entity and not the |
| articles of organization and file them with the state in | | | | ownership group. |
| which they wish to register their business. | | | | Having the flexibility to develop their own management |
| There are some fees applicable to registering a | | | | structure and ownership system is also a great |
| business as an LLC similar to registering a corporation. | | | | advantage for a limited liability company versus |
| An added benefit is that you don't necessarily need a | | | | incorporation. Under a corporate business registration |
| lawyer to register a business as an LLC and this is | | | | regime the laws specify the number of officers and |
| especially useful for small businesses where both time | | | | the responsibilities of Board of Directors to report to |
| and cash is at a premium. You can choose to get | | | | shareholders. This makes it difficult to separate the |
| advice from a lawyer or an accountant about the | | | | operation of the business from the desire to earn a |
| choice of registering a business as a limited liability | | | | maximum profit. |
| company but it is not required by law. | | | | Finally the last advantage of having an LLC business |
| As noted above some of the benefits of registering a | | | | registration is that it is much simpler to operate under |
| business as an LLC include tax advantages and limited | | | | than other formal forms of registration. There are |
| liability. In addition limited liability companies have much | | | | minimal requirements for reporting to state and other |
| more flexibility when developing a management and | | | | regulatory bodies and unless a company desires to |
| ownership structure and the reporting requirements are | | | | have one there is no requirement for a Board of |
| far less under this form of business registration. | | | | Directors or an Annual General Meeting to approve |
| The tax benefits of an LLC business registration are | | | | management's handling of the business, although we |
| mostly gained through what is called pass-through | | | | recommend that you do so anyway. |