What Is A Limited Liability Company ?
A limited liability company is an organization that is a separate entity and it offers the owners of the business limited liability on debts and bankruptcies, protects their personal assets and also offers several tax benefits. A limited liability has several features like it combines the features of corporation and partnership organizations.
The tax benefits are similar to that of a partnership company and the functioning is like that of a corporation. Even if a person is running a small business, he or she can still form a LLC because they will be treated as a sole proprietorship company and the owner can be treated as an employee with tax benefits.
The number of members in a LLC can be unlimited and this suits for international organizations which are opening business set ups in global markets. They can appoint a representative for their own company and also be employed by the same. All the members of the company are treated as directed and their responsibility and profit sharing can be decided among themselves based on the contract. The LLC can have any kind of profit sharing and the rules are very flexible. They do not have to hold annual general body meetings or observe minutes of the meeting. Losses and profits in the business can be accounted smartly through the business solutions available with an LLC.
The company does not have to be individual tax and corporate tax separately and everything can be accounted under one umbrella. These are some of the benefits and also factors that define a LLC.
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