There are unique benefits and protections afforded to LLC owners which make it easy to understand why they are so highly favored. As a new investor, it’s important for you to understand why you should care about LLCs, their different types, and the tax implications. This collection of LLC articles is your guide to limited liability companies, beginning with an overview of the term and including reasons and techniques for you to start one yourself.
Pass-through taxationAsset protectionLimited compliance rulesLess-rigid structures for management
The meeting requirements for LLCs are also far fewer than for corporations, and they’re easier to set up, too. If LLCs have sparked your interest, take some time to learn the pros and cons, as well as other considerations, before deciding to buy equity in one or to form your own.
Ownership and membersProfit and loss allocationsDividends and distributionsRestrictionsDissolution plans
Before investing through an LLC, review the operating agreement so that you can anticipate future scenarios. A good attorney can help.
Asset privacyFavorable tax lawsShareholder anonymity
Low taxesAsset privacyLow annual filing expensesEasy start-up processesAsset protection from creditors
Your business doesn’t need to be based in Delaware to take advantage of the benefits. Walton Enterprises, LLC, is one example of a famous family limited liability company. Through this LLC, members of Sam Walton’s family control Wal-Mart Stores, Inc., a regional bank named Arvest, and other investments. Find out whether a family limited liability company is the right choice for you.
