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:
Liability: Limited
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


Advantages:
Limited liability without having to incorporate
Pass-through income taxation
No double taxation

Disadvantages:
No personal loss deduction for owner or partner
No business continuity
Multiple income tax returns (one for the LLC and one for the partner)

Corporations

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