Two organizational structures exist of a limited liability company - a manager management and member management. In member management, all members share in the operation of the company, where as in the manager management, the members put a manager in charge of the company.

Like a Corporation, an LLC offers limited liability to its owners. Unlike a Corporation, however, an LLC is taxed as a Partnership or Sole Proprietorship (unless the LLC elects to be taxed as a Corporation). This allows an LLC to pass all its income and losses through to the owners. Furthermore, the LLC has an advantage over a C-Corporation which makes an S-Corporation tax election because the S-Corporation can only have 100 stockholders and the stockholders cannot be Corporations or non-U.S.

A limited liability company (LLC) is a sort of hybrid form between a partnership and an S corporation ? it has the liability protection of a corporation, with the advantage of being treated as a partnership. All profits and losses flow through to the individual owners' income tax forms. An LLC is simpler to establish and maintain than a corporation. A Certificate of Organization and a docketing statement must be filed with the state. This is a popular form for many new small businesses.

The reasons for incorporating a limited liability company are varied, for example, it could involve ownership of a property, obtaining investment funds, taxation or contractual relationships. Many businesses function satisfactorily as sole traders or partnerships however their personal assets are at risk in the event of a failure.

You can start the process of forming your Limited Liability Company from the home page of the Express Biz website. It's simple, quick and painless! All the paperwork, legal documentation, payment of government fees and (if you want) IRD & GST registration is done for you by Express Biz. Your business will be up and running, with all the correct documentation to make it legal, in as little as 24 hours.

If it is a qualified LLC, its members may be taxed by the federal government in the same way that partners in a partnership are taxed, that is any net income or losses are passed through directly to the members, as the LLC is not considered a taxable entity. However, this kind of tax treatment may not be available to the members with respect to their state income taxes.