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  • Add You - What is a Limited Liability Corporation?

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    s may manage it. The owners elect one or more managers, much like a board of directors. These managers manage the business, freeing the owners from voting on e
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    A limited liability company or LLC is an organization owned by one or more individuals or corporations. The members own membership interests in the company and not shares. LLC is a recently developed type of legal entity. For many entrepreneurs, it is the ideal choice, as it has the tax advantages of the limited partnership and the limited liability element of corporations.

    The LLC is a separate legal entity and liabilities do not pass on to the members. The management and organization of the LLC are flexible and governed by the Membership Agreement. Owners may manage the LLC, where all owners vote on all issues or managers may manage it. The owners elect one or more managers, much like a board of directors. These managers manage the business, freeing the owners from voting on e

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    not shares. LLC is a recently developed type of legal entity. For many entrepreneurs, it is the ideal choice, as it has the tax advantages of the limited partnership and the limited liability element of corporations.

    The LLC is a separate legal entity and liabilities do not pass on to the members. The management and organization of the LLC are flexible and governed by the Membership Agreement. Owners may manage the LLC, where all owners vote on all issues or managers may manage it. The owners elect one or more managers, much like a board of directors. These managers manage the business, freeing the owners from voting on e

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    The LLC is a separate legal entity and liabilities do not pass on to the members. The management and organization of the LLC are flexible and governed by the Membership Agreement. Owners may manage the LLC, where all owners vote on all issues or managers may manage it. The owners elect one or more managers, much like a board of directors. These managers manage the business, freeing the owners from voting on e

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    nt and organization of the LLC are flexible and governed by the Membership Agreement. Owners may manage the LLC, where all owners vote on all issues or managers may manage it. The owners elect one or more managers, much like a board of directors. These managers manage the business, freeing the owners from voting on e
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    s may manage it. The owners elect one or more managers, much like a board of directors. These managers manage the business, freeing the owners from voting on every operational detail. The IRS does not recognize the LLC as a separate category. A single member LLC has to file as sole proprietorship while the multi-member LLC may chose to be taxed as corporations or partnerships.

    The reason for the popularity of the LLC is that it caters to the demands of the accountants and attorneys. The LLC is a pass-through entity. This means that there is no double taxation, as with corporations. Accountants tend to prefer the LLC, because they are worried about the dangers of double taxation, if their clients form a corporation. Corporations have to pay taxes on their income. Their shareholde

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