What is an LLC?
LLC stands for Limited Liability Company. A Limited Liability Company is a very popular type of business entity for small businesses. It provides the personal liability protections and safeguards of a corporation with the tax efficiencies and flexibility of a partnership.
Business partners who incorporate using a Nevada Limited Liability Company (LLC) are typically able to avoid the double taxation of profits, while at the same time preserving the separation of company liability from individual personal assets. In a Nevada LLC the ownership interest is usually denominated into “units,” (which are essentially the same as “stock”) and the owners are referred to as “members” of the company.
What are the advantages of an LLC?
LLC’s provide several benefits and safeguards:
- Less paperwork than a corporation
- Enhanced credibility as a business
- Pass-through taxation
- Legal protection of personal assets
- No residency requirement
LLC vs. LLP
Limited Liability Company (LLC) structures typically provide more protection and management options than LLP’s. Due to the limited liability of member owners, certain restrictions apply to the types of companies that can incorporate as Nevada LLC’s. For example, banks, insurance companies, and other financial institutions cannot incorporate as Limited Liability Companies. Taxation can be passed through the members of the LLC on the member’s individual tax returns, or has the flexibility to be taxed as a corporation without passing through the members. In some situations and circumstances, the structure of taxation can more be profitable to the members.
Contact Nevada LLC attorney Greg Smithto structure your Nevada Limited Liability Company to take advantage of tax structures, safety and proper legal organization. As a Certified Public Accountant* and Nevada LLC lawyer, Greg Smith will work with you and your desires for profitability to structure or restructure your business.
To schedule an appointment, contact Smith & Shapiro at (702) 318-5033, Monday – Friday, 8:00am – 5:00pm, or fill out our online contact form above.