What is an LLC?
Hello this is your LLC Guru here, welcome to our site! We help regular people get their own LLC’s quickly, inexpensively, and with confidence! If you need an LLC, you have come to the right sight, YourLLCGuru.com, we’ll help you get your own LLC in about 10 minutes!
In this post, I will explain what an LLC is, and why you may want to consider getting one, but before we get into that, please note, that I am not providing any legal or tax advice here.
“Limited Liability Company”
The term LLC is short for Limited Liability Company. An LLC is a type of business entity that can have one or more owners, referred to as “members.” While the term LLC stands for limited liability company, it is often mistakenly thought of as a limited liability corporation but it is important to mention that an LLC is NOT a corporation at all. A corporation provides protection as well but is usually more complex and costly than an LLC to set up and maintain.
An important feature of an LLC is “limited liability,” which means that LLC members are protected from personal liability for business debts and claims. Because only LLC assets are used to pay off any business debts, LLC owners put at risk only the money that they’ve invested in the LLC, NOT their personal assets. This is very important.
“Tax Advantages”
Another important aspect of an LLC is that it is not considered separate from its owners for tax purposes. It is what the IRS calls a “pass-through entity,” like a partnership or sole proprietorship. This means that business income passes through the business to the LLC members, who report their share of profits—or losses—on their individual income tax returns.
LLCs provide their owners with limited liability. But LLCs are ordinarily taxed like sole proprietorships or partnerships, a big advantage. In addition, LLC owners do not work as employees of the LLC—they are self-employed business owners. This makes an LLC the perfect solution for most small businesses!
So an LLC is a limited liability company which means it shields the business owner from risk and offers certain tax advantages. We believe if you have almost any kind of business you need protection and in most cases, an LLC is a great way to go!
If you are considering applying for an LLC, please check out some of my other posts on this site or videos on YouTube so you can learn more helpful information about LLC’s and how to use them to protect yourself in business.