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. See similar questions...

There are many ways to convert an LLC to a corporation, each of which has different legal and financial implications. For example, you could convert through a merger, or you could simply start a new corporation and contribute the assets of the LLC into the corporation. We can certainly help you form an entirely new corporation, but it is best to speak with an attorney or accountant to consider your options. See similar questions...

While the S corporation and LLC both have pass-through taxation, the S corporation lacks the flexibility of an LLC in allocating income to the owners. LLC may offer several classes of membership interest while an S corporation may only have one class of stock. Any number of individuals or entities may own interests in an LLC. However, ownership interest in an S corporation is limited to no more than 100 shareholders. See similar questions...

An LLC provides the same protection from liability as a corporation but without the more complex recordkeeping tax structure required of corporations. See similar questions...

The LLC business structure offers many of the desirable features of corporations and other forms of partnerships, but without the risk or restrictions. In addition to generally more flexible rules and regulations regarding the allocation of gains and losses, the LLC structure limits the liability of its members to the assets of the respective LLC. This means that its members are not personally liable or at risk in the event of a lawsuit. See similar questions...

A limited liability company is a relatively new business entity that in many respects is similar to a corporation. Idaho law started to recognize LLCs in 1993. All 50 states now have legislation recognizing LLCs. The LLC gives the owners of the company limited liability protection similar to a corporation. In most cases an LLC will be taxed under the favorable rules applicable to partnerships. The management of an LLC can be vested in its owners (members) or in its managers. See similar questions...

The most significant benefit that LLCs and corporations offer is that the owners/investors in the venture can achieve limited liability protection so that their personal assets not involved in the business can be protected from the liabilities of the business venture. See similar questions...

The stockholders of a Delaware Corporation and the owners of units in a Delaware LLC are not personally liable to the creditors of a Delaware Corporation or LLC unless they personally guarantee the obligations. Go Back to the Top of the Page See similar questions...

A state-registered LLC can be taxed for federal income tax purposes as a partnership. Under the check-the-box rules included on IRS Form SS-4, an LLC can elect partnership status to avoid taxation at the entity level as an "association taxed as a corporation." If an LLC is not taxed as a partnership, it will be taxed at the entity level similar to a standard or C corporation. See similar questions...

Partners in a partnership or LLC cannot make pre-tax contributions to their HSAs through the partnership by salary reduction. However, they can make their own personal contributions to their HSAs and take the "above-the-line" deduction on their personal income taxes. No. Self-employed persons may not contribute to an HSA on a pre-tax basis and may not take the amount of their HSA contribution as a deduction for SECA purposes. See similar questions...