Have you ever wondered why your business or a business has LLC at the end of it? Wonder no more! LLC stands for Limited Liability Company. LLC is a relatively new and popular business structure because it allows owners tax advantages, decreased liability, flexible ownership and management.
Benefits of defining your business as an LLC:
- A Limited Liability Company chooses which business type to be taxed as (e.g. a partnership)
- the business can have unlimited shareholders who do not have to be U.S. citizens
- The personal assets of LLC members are protected
- there is no need for a board of directors because members can participate in “member management” (i.e. members can make the management decisions of the company)
In conclusion, if you are interested in learning more about LLCs the article, by Lisa Magloff, gives a more in-depth definition.
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Additionally, visit our Tax Preparation page to learn about which types of corporations we serve.