| A limited liability corporation is a separate business | | | | In case of a multiple-member limited liability corporation, |
| entity that combines the various characteristics of | | | | either a partnership return form or a corporation return |
| partnership and corporation to form an entirely distinct | | | | form can be filed. A partnership return is filed in Form |
| legal unit. Limited liability corporations can be broadly | | | | 1065, while a corporation return form is filed in Form |
| distinguished into two forms, namely single-member | | | | 8832. |
| limited liability corporations and multiple-member limited | | | | A limited liability corporation can be either a domestic |
| liability corporations. There can be various other forms | | | | limited liability corporation or a foreign limited liability |
| of limited liability companies. | | | | corporation. Filing as a foreign limited liability corporation |
| A professional limited liability corporation can vary | | | | means that one has to pay the qualifying fees to the |
| depending on the kind of business venture that is filed | | | | state, apart from the normal filing fees. The corporation |
| in as a limited liability corporation. Although all 50 states | | | | also has to pay the annual taxes at the domestic |
| allow limited liability corporations, the laws of each state | | | | state where it had been originally incorporated. It is |
| differ, and thereby the structure, type, and set-up | | | | always advisable to file a limited liability corporation at |
| formalities can vary. In certain states, banks and farms | | | | site of maximum business. |
| are not allowed to set up limited liability corporations. | | | | The various advantages and benefits of pass-through |
| A single-member limited liability corporation is generally | | | | taxation, flexible management, investment, type and |
| overlooked from the point of filing a federal tax return, | | | | number of members, distribution of profit and limited |
| although it is a legal entity in its right. It may be classified | | | | liability protection remain unchanged in the various |
| as a sole proprietorship either by default or by election. | | | | types of corporations. However, with multiple |
| The earnings and expenditures of a single-member | | | | memberships it is better to have an operating |
| limited liability corporation can be accounted in Form | | | | agreement drafted by all members to overcome |
| 1040, schedule C. | | | | various operational hazards. |