Limited Liability Company (LLC)
The limited liability company is a flexible enterprise structure that provides the benefits of both a partnership and corporate entity.
Pertinent data of Limited Liability Company:
Nature of Owner's Income: Self-employment income
Federal Tax Forms used: Form 1065, 1120, 1120S or 1040+Schedule C (varies)
Compensation reported: Schedule K-1
Limited liability without having to incorporate
Pass-through income taxation
No double taxation
No personal loss deduction for owner or partner
No business continuity
Multiple income tax returns (one for the LLC and one for the partner)
Small BusinessLimited liability is a legal concept that protects equity owners from personal losses due to their ownership interest in the company.
InvestingTotal liabilities are the combined debts an individual or company owes.
TaxesTax liability is the amount of money a person or entity owes to the government as the result of a taxable event.
Small BusinessLearn the differences between the types of business organizations so you can determine how to best structure your business for tax and liability limitations.
Small BusinessUnlimited liability means that the owners of a business are liable for the entire amount of debt and obligations of that business.
Personal FinanceHere's an analysis of how to adjust liabilities and assets to improve net worth.
InvestingCurrent Liabilities are company debts due within one year or one operating cycle, whichever is greater. An operating cycle is the time it takes a company to purchase inventory and convert it ...
InsightsLLPs are a flexible legal and tax entity that allows partners to benefit from economies of scale by working together while also reducing their liability for the actions of other partners.
TradingCould incorporating your business help protect it? Find out here.
InvestingAccrued liability is an accounting term for an expense a business has incurred but has yet to pay.