Limited Liability Company
What is a Limited Liability Company?
LLC stands for Limited Liability Company and has rapidly become one of the most popular business entity types for new and small businesses, largely because it is considered to be simpler and more flexible than a corporation. The LLC business structure combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation, creating the best of both worlds for business owners.
This means that if you choose to form an LLC, your business will become it’s own legal entity that has separate debts and legal matters. However, LLCs are still tied to your personal taxes. If you are the owner of an LLC, you are referred to as a member, and LLCs can have a single member or multiple members it’s up to you.
If an LLC is right for you, contact us to open one. 786-370-7284 or 786-303-2624
What Types of Businesses Should Choose an LLC?
If you don’t plan on raising investment money for your business, think you might need asset protection and need flexible business management and taxes, then an LLC is likely the best choice for your business. Whether you are a sole proprietor, have a partner, or a multi-member corporation, the LLC is a great choice for small business owners, as it can provide the same limited liability protection as a corporation, without many of the complexities and formalities associated with them.
At fornaris Accounting we see all sizes and verticals of businesses forming an LLC — from LLCs for real estate agents or financial advisors to personal trainers. A number of entrepreneurs decide that an LLC is the business structure that fits their needs. Some businesses are prevented from forming an LLC, however. Typically financial companies such as banks, financial trust companies and insurance agencies can’t file as an LLC.
Treat an LLC as either a corporation, partnership, or as part of the LLC’s owner’s tax return. If choose to be an LLC, you may need assistance filing tax forms for as an individual, partnership, or corporation.
This list is a list, and the details are ignored. The list is not all inclusive, either. If you have questions about the details, or you wonder if something can be deducted, you can give us a call, schedule a free consultation.
- Rent and Utilities
- Cost of goods sold
- Employees’ pay
- Education expenses
- Fringe benefits
- Reimbursements for business expenses incurred by you or your employees
- Certain taxes
- Certain insurance premiums
- Start-up costs, but they’re limited
- Repair and Maintenance costs
- Bad debt
- Travel, meals and entertainment
- Certain car and truck expenses
- Charitable contributions
- Credit card convenience/merchant fees
- Business and trade associations
- Legal and professional fees
- Licenses and regulatory fees
- Repayments of previously recorded income
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