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Type of Business Structure

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Such companies have similarities to corporations, that is, the owners do not have a huge risk on their shoulders and instead only have to deal with a set amount of risk in terms of debts and the actions taken by the company. this can be seen as the main reason for the popularity of such firms. LLC has features similar to partnership too, like having flexible management and benefit of pass-through taxation.
The LLC owners are called members. Ownership is mostly not restricted in many states and therefore the body of owners can consist of several different kinds of entities which would include corporations, individuals, and other limited liability companies along with foreign entities. Although it has often been seen that there are no real barriers to the number of owners one such firm can have, it is also true that some states are privy to allowing only single owner limited liability companies i.e. ones that have only a single owner that runs and managed the firm (Steingold, 2009, p.54).
Federal taxes are another facet that is different from other kinds of corporations. The federal government doesn’t see these types of companies as an appropriate segment for taxation. It is a must for an LLC business to file the tax return as a corporation, sole proprietorship or partnership. The LLC companies that do not come under the classification of a corporation most likely will need to fill out the 8832 form in order to select the main business entity classification for themselves. A corporation or firm that is run by two different people simultaneously can opt for being placed into the category of a partnership, association taxable or a corporation. Companies that are controlled by a singular member also have the options of becoming either a corporation or an association taxable form. in some cases, they can have the “disregarded entity” option, which is separated as a standalone entity that has nothing to do with its owner.