Company Registration LLC

An LLC (Limited Liability Company) is a type of legal business structure in which the owners have limited liability, like a corporation, but with the flexibility and administrative simplicity of a partnership.

Key Features of an LLC:

• Limited Liability-The owners (called “members”) are not personally liable for the debts and obligations of the business. This means that, in most cases, the personal assets of the members are protected if the LLC runs into financial trouble or faces lawsuits.
• Flexibility in Management-LLCs allow members to choose how they want the business to be run. It can be run by the members themselves or by a designated manager.
• Tax Options-LLCs have flexibility in how they are taxed. By default, they are considered pass-through entities, meaning that profits and losses pass directly to the members, who report them on their personal taxes. However, an LLC can choose to be taxed as an S or C corporation if it is more beneficial to it.
• Minimal Administrative Requirements-Unlike corporations, LLCs are not required to have boards of directors, annual meetings, or keep minutes, which makes them easier to operate in terms of paperwork.

Advantages of an LLC:

• Personal Asset Protection-Limited liability protects the personal assets of the owners.
  Tax Simplification: The pass-through entity structure prevents double taxation.
  Operational Flexibility: LLCs can have one or multiple members, and there is no limit on the number of owners.

Disadvantages of an LLC:

• Costs and Renewals-In some states, LLCs have formation fees and must pay annual taxes or renewals.