The Limited Liability Company (LLC)
The LLC is a very popular entity choice. It blends the advantages of corporate status with the benefits of partnership status. An LLC offers its owners liability protection from the liabilities of the business like a corporation. This allows the owners to participate in the management of the company without exposing themselves to the liabilities of the company. LLCs can be "member-managed" or "manager-managed" these designations go towards issues of control, agency, and management. We can discuss the perks and down falls at our initial consult.
The LLC is taxed for federal purposes as if it was a partnership. This allows LLCs to avoid the double taxation that occurs under C Corps and allows the owners to pass through their earnings to their individual tax filings. Additionally, LLCs do not have a capped member number like the S-Corp at 100. Lastly, partnerships, corporations, nonresident aliens and any type of trust can be owners of an LLC. This provides great flexibility when it comes to planning.