Limited Liability Company
A Limited Liability Company (LLC) is a versatile business structure that combines the benefits of both sole proprietorships/partnerships and corporations. An LLC typically adopts the "pass-through" taxation model of sole proprietorships or partnerships, where the profits and losses of the business are reported on the owners’ personal tax returns. At the same time, it limits the owners’ personal liability, similar to a corporation, protecting their personal assets from business-related debts or lawsuits.
Unlike corporations, an LLC is usually not considered a separate taxable entity. This means that the company itself does not pay taxes or account for its losses. Instead, the responsibility of reporting profits or losses lies with the owners, making it a tax-efficient choice for many businesses. Additionally, LLC owners enjoy protection from personal liability, offering a secure and flexible structure for entrepreneurs.
At LegitTaxFile, we help you navigate the complexities of forming an LLC, ensuring compliance with legal and tax regulations. Our team assists in preparing and filing the necessary documents, providing personalized advice to set up your LLC effectively. Let us guide you in leveraging the benefits of an LLC to achieve your business goals.
