A limited liability company (LLC) is a distinct type of business entity that has the powers of both a corporation and a partnership depending on how the LLC is structured.
An LLC is a popular choice of business entity by entrepreneurs because an LLC is very flexible.
Structure
An LLC could be structured like a general partnership with limited liability; or a limited partnership where all the owners are free to participate in the management and all have limited liability; or an “S” corporation—without the ownership and tax restrictions imposed by the Internal Revenue Code.
In order to maximize the benefits of the flexibility that LLC provides, it is important to consult with knowledgeable business attorneys and business law firms like Anunobi Law PLLC, to not only set up an LLC but to structure the LLC in a way that meets the specific needs of the business owners.
Management
The owners of an LLC are called members. A member could be an individual, a corporation, trust, partnership, or any other legal entity. An LLC may be managed by its members or by managers. The choice of management structure should be made with the guidance of a competent attorney or law firm.
Taxation
Generally speaking, members of an LLC enjoy pass through taxation (depending on how the LLC is structured). This often results in favorable tax treatment as the LLC is not taxed on its income—but rather, the income of the LLC passes through to the members who include their respective share of the profit or loss in their individual tax returns.
Speak with Houston Texas LLC Attorneys for More Information
To find out how Anunobi Law PLLC can help you form or reorganize your company, contact our office. Anunobi Law offers the experience needed to assist you in forming an LLC, evaluating your business idea, reorganizing or restructuring your business. You can request a consultation by calling (832) 538-0833 or by submitting our contact form.