Limited Liability Companies (LLCs)

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If you need information or advice about Limited Liability Companies (LLC), you'll find it here on FreeAdvice. With articles, answers and other useful resources regarding what an LLC is, and how they are taxed, managed and incorporated, this section will help you determine if an LLC is the right business model for you or aid in addressing the needs of an existing LLC.

A limited liability company is a relatively new type of legal entity that blends certain elements of partnerships and corporations. LLCs are often used to form a business entity, but can be created for any lawful purpose. Each state has its own set of laws and statutes that regulate LLCs chartered in that state. The biggest advantage of an LLC is that a partner or partial owner of the company, known as a member, is only liable for the amount of his or her capital contribution. This means that if the LLC is sued, it is the company that is sued rather than the individual members. LLCs can also offer significant tax benefits. Members can elect whether to have the company treated as a partnership or corporation for federal tax purposes; if a partnership, the LLC becomes a “pass-through” entity that avoids the double taxation typically imposed upon the shareholders of a standard corporation. Forming an LLC requires filing an application with the state regulatory body, a form known as the articles of organization, and an operating agreement. To learn more about the benefits of LLCs and how they are created, visit the links on this page.