LLC stands for Limited Liability Company and the owners are called members. The LLC is a relatively new type of business structure. It was only in 1996 that most states had recognized them.
Introduction
LLC stands for Limited Liability Company and the owners are called members.
The LLC is a relatively new type of business structure. It was only in 1996 that most states had recognized them.
LLCs have become extremely popular because they offer three major benefits:
For these reasons the LLC is the entity of choice of many tax pros and attorneys, especially those advising small business owners.
Setting Up Your LLC - LLC Tax Advantages
You can either act as your own registered agent or there are plenty of service companies that will take on the job for a small annual fee. Hiring an outside party protects your privacy and ensures there is always someone available to perform this duty.
However, in many states the saving comes to less than $100 so this will probably not be the most important factor when choosing your ideal business structure.
The Operating Agreement
The reason is an operating agreement shows the outside world that you take the management of your business seriously and makes it look less like a sole proprietorship. This might help you if someone tries to argue that you and your LLC are actually one and the same. A creditor might do this to try and “pierce the veil” of limited liability and come after your personal assets.
The New Entrepreneurs Relief in the UK: A Boon for Business Owners
The UK's recent budget announcement has brought a significant update to tax relief for business owners. Effective from April 6, 2008, the new Entrepreneurs Relief offers a substantial reduction in capital gains tax (CGT) for those selling businesses or certain shares. This move is seen as a compromise from the previously introduced flat 18% CGT rate and is now a pivotal tax advantage for entrepreneurs. The relief allows for a reduced effective CGT rate of 10% on the first £1 million of gains, with any excess taxed at the standard 18% rate. This article delves into the details of the relief, its application, and strategic tax planning tips to maximize its benefits.S Corporation Tax Explained
Many businesses start life as an S corp and when profitable become C Corps to benefit from income splitting and fringe benefits.Setting up a Limited Liability Company
Both sole proprietors and partnerships can convert to a limited liability company. Until recently some states did not allow one-member LLCs. This is no longer the case. One-member LLCs are allowed in every state.