LLCs have an easier time finding financing than partnerships and sole proprietorships because they offer a formal structure for investors and lenders. Moreover, a LLC offers flexibility to distribute gains disproportionately to investment in the business. (As stated previously, this must pass IRS special allocation tests.) There are a number of financing issues involving LLCs, [...]
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Financing Issues for an Limited Liability Company
September 26th, 2007 
davidguide 
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Taxes for a LLC
September 26th, 2007 davidguide For a single-owner LLC, you just need to add a Schedule C, “Profit or Loss from Business,” (available at http://www.irs.gov) and submit it with your tax returns. For a multi-owned LLC, you will need to file Form 1065, “U.S. Return of Partnership Income” (same as with partnerships). Furthermore, the members of the multi-owned LLC need [...]
Protecting your LLC Limited Liability Status
September 26th, 2007 davidguide Maintaining Corporate Identity It is important to separate the identity of the corporation from its owners. This will help you protect your limited liability status. Ensure that you: Make all annual filings with the Secretary of State. Operate the company under its name, making sure that the people doing business with your company know that [...]
Can I lose My Companys Limited Liability protection?
September 26th, 2007 davidguide As with corporations, there are certain exceptions to the limited liability protection afforded by the LLC: · The LLC defaults on a loan that an owner personally guarantees. · The managers do not deposit the taxes withheld from employee wages. · A member injures someone. · The owner does not separate the corporation as an [...]
Managing a Limited Liability Company (LLC)
September 26th, 2007 davidguide Creating an LLC Operating Agreement The LLC operating agreement allows you to coordinate your financial, operational, and working conditions with your partners. As with a partnership, the LLC lets you elect to run your company with your rules and not by the default rules set your State (which would come into affect if you did [...]
The Limited Liability Company (LLC)
September 26th, 2007 davidguide The Limited Liability Company (LLC) is a business structure that affords the limited liability protection of a corporation and the management flexibility of a sole proprietorship or a partnership. In case of a lawsuit or unpaid debt, only the business assets are at risk. In contrast with a business set up as a corporation, a [...]
