LLC Formation, medium between small partnerships and a corporation

Much like a corporation, LLC owners have some protection from being personally liable for business debts.
LLC's are relatively new form of ownership and is quickly becoming the entity of choice. First recognized by the IRS in 1988, LLCs offer the limited liability protection of a corporation and the tax advantages of a partnership without the restrictions of a C corporation. The LLC is still evolving.
A Limited Liability Company or LLC is a mixture between a partnership and a corporation. An LLC protects the owners from personal liability on the company’s debts just like a corporation with the tax-benefits of a partnership or a proprietorship firm.

In addition to the limited liability protection, there are also substantial tax benefits to be garnered from the formation of an LLC. The LLC has the check box method. The LLC can elect to be taxed as a partnership, with pass through?
LLC formation is a happy medium between a between a small partnership and a full-fledged corporation. Business owners can enjoy liability protection while avoiding many of the hoops you must jump through to incorporate a business. Learning how to form an LLC is much easier than figuring out how to incorporate.
A limited liability company can have employees and must adhere to the same employer laws as sole proprietorships, partnerships and corporations. This means that the LLC must have an employer identification number and must withhold taxes from its employees' earnings. Moreover, the LLC is bound by other employer laws pertaining to workplace practices.
To retain your LLC's status as a separate entity, LLC members must observe certain formalities, such as keeping detailed financial records and recording minutes of major decisions.

Because of these attributes, the LLC fits somewhere between the partnership and the corporation (or, for one-owner businesses, the sole proprietorship and the one-person corporation).


California LLC is a website that “>Form an LLC and Form an S Corporation. Start a California Small Business Online Now. LawInc.com