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ONLINE LLCs TODAY:
>> Why Incorporate Form a
>> Where to Corporation
Incorporate
Form a Limited
>> Corporations vs. Liability Company
LLCs
A limited liability company, or "LLC", is an unincorporated Compare
>> Registered Agent Packages
Services business entity which is a cross between a corporation and a
partnership. Like a corporation, an LLC protects its members
>> Company from personal liability for the debts and obligations of the
Compliance company. Like a partnership, an LLC is typically formed by the
Checklist filing of a "certificate of formation" or similar certificate with the
>> State Compliance Secretary of State and is taxed like a partnership. Also like a
Requirements partnership, the members of LLCs typically enter into an
>> More IRS operating agreement which establishes how the LLC is
Information managed. This agreement controls the management of the
company and how the members relate to each other.
>> S Corporation /
Pass Through
Taxation Where S Corporations have limits on the number of
shareholders who also must be US residents, LLCs have no
>> Purchase restrictions in these regards. This makes the LLC a particularly
Corporate Kits suitable vehicle for non-US residents (See Company Formation
>> Company for US Non-residents.) An LLC can have more flexibility in
Formation For US management because this is controlled by the members
Non-Residents agreement not by the Business Corporation Act of the state.
>> Characteristics of
Business Entities NOTE: See Characteristics of Different Business Entities for a
comparison of different business forms.

Unless the LLC elects to be taxed as a corporation, it will be

taxed as a partnership - income and deductions of the LLC will
be passed through to members for inclusion in their personal
returns. See "pass-through" taxation for more information.

Bottom Line:
If one or more of the owners are non-US citizens, if you have a
non-traditional management structure and so need more
flexibility than the standard Officers and Directors arrangement
of corporations governed by the state's Business Corporation
Act, then an LLC may be for you. If tax considerations are a
driving factor, you can achieve the same pass-through taxation
by electing S Corporation status as a corporation.
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