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LLC
LLC
An LLC is one of the least complex business structures. An LLC's structure is flexible and
gives the owners many perks perk such as pass-through taxes,and legal protection for
your personal assets.
Government Regulations
1. Choose a Business Name
2. File the Articles of Organizations: a document that legitimizes ones LLC,
business name, names of members, address, etc.
3. An Operating Agreement: not required, provides rules and regulations for
smooth operation.
Tax Restrictions
In the eyes of the federal government, an LLC is not a separate tax entity, so the
business itself is not taxed. Instead, all federal income taxes are passed on to the
LLC's members and are paid through their personal income tax.Since the federal
government does not recognize LLC as a business entity for taxation purposes, all
LLCs must file as a corporation, partnership, or sole proprietorship tax return.
Certain LLCs are automatically classified and taxed as a corporation by federal tax
law.
Examples of LLCs
- Chrysler
- USPS
- Kaiser
- Mars (M&M, Skittles, Twix, Wrigley)
- Toys R Us
- Trump Organization