Business, Inc. LLC: Case Study

As a hybrid of partnerships and corporations, LLC’s provide limited liability for debts and flexibility to be taxed as a partnership or corporation (Staring and Naming a Business Presentation, 2012, Slide 5). Some specific advantages include being empowered authorities in the management of the business, diversity of members, limited liability, pass-through taxation, and less paperwork (appreciated by many). A drawback of this business structure is the need for a tailored operating agreement that specifies the specific needs of the

Limited liability means it does not exceed the amount invested in a partnership or limited liability company. The limited liability feature is one of the biggest advantages of investing in publicly listed companies. While a shareholder can participate wholly in the growth of a company, his or her liability is restricted to the

Mr. Phillips believed that the limited partnership and S corporation were very similar. The tax advantages and disadvantages of each form seemed to be of equal weight. As a result, Mr. Phillips requested that the decision be made based on the form that would best fit the various interests of the groups involved. The outside investors wanted to insulate themselves from any possibility of personal liability. The LLC allows for limited liability, as profit and losses are allocated to mirror the economic risks of each LLC member. LLCs offer greater flexibility in allocating profits and losses, when

Many believe that liability is a biggest issue in a general partnership than in a sole proprietorship. The owners of the company are still fully liable for any debts the company may accrue as well as the liability for any lawsuits that may be brought against the company. However, the bigger issue in a partnership is that now each partner can be liable for the other partner’s actions. If one partner is sued for malpractice, the other partner may suffer because of it.

C corporations are able to have unlimited shareholders, which is probably an important characteristic to large companies. (S corporations, for example, may not have more than 100 shareholders.) C corporations can also be owned by non-citizens or other business entities, where S corporations can only be owned by individuals who are US citizens.

By using the LLC’s abilities to crate separate classes of stocks, he would be able to create an investment class along with a partner class if he wanted to bring in either just capital amounts, or other people to help run his business. In addition to this, all investors would only be liable for a maximum amount of their investment, and would not bear any personal liability for the company. By creating different classes of stock, he would also be able to maintain control of his company, or split control as he sees fit with partners of his

I think a partnership is the best business organization for a company. A Partnership consists of two or more individuals in business together. Normally, all general partners have an equal voice in management. Partnerships have many advantages, for example, Partnerships are relatively easy to form; No corporate income taxes. Partnerships declare income by filing a partnership income tax return. Yet the partnership pays no taxes when this partnership tax

This allows each owner to protect personal assets from claims and lawsuits against the company. This limits the liability of each owner the amount that he or she has invested in the business. The LLC also has the option to choose your own tax situation. In addition, the ruling does not affect the personal finances of the owner as a sole proprietorship.

A limited liability company consists of a single owner, or sometimes more than one owner, and are not taxed as separate business entities. All profits and losses pass through the business to those who own the company. Owners must report profits and losses on their personal tax return filing as a corporation, partnership, or sole proprietorship. If the LLC is ran by a single owner, they file a 1040 Schedule C form as a sole proprietor. Partners file a 1065 form consisting of a partnership, and a form 1120 is filed if the LLC is filing as a corporation. The LLC must be registered such as the State Corporation Commission, Department of Commerce and Consumer Affairs, Department of Consumer and Regulatory Affairs, or the Division of Corporations and Commercial Code. The great thing about an LLC is that the owner has freedom in management. The owner is able to run the organization as they see fit not answering to anyone,

* Management and Control - According to law, day-to-day management of a corporation rests with the officers appointed by the board of directors, who are ultimately responsible for the management of the corporation. The board of directors is elected by the votes of the shareholders.

Income taxes: With an LLC our members have the most flexibility for taxation; our company can choose the form of taxation that best suits our member needs

The default classification for an LLC is a partnership; this is because it has more than one owner. The alternative classifications for Bruce and Bob's LLC are a C corporation and an S corporation. The tax consequences are that double taxation applies if income is distributed to them as owner. This is because the LLC will pays taxes on income and then the owners will pay taxes on their portion of the income received by them. Form 8832 would need to be filed with their return for a C Corporation. In this case of the S Corporation from 2553 would need to be filed instead. With the S Corporation they can avoid double taxaion and use losses to offset income from other sources. The advantages of choosing these tax classifications come from property,

This constitutes a proposal tendered by Invent One, LLC. to fabricate and assemble ten pieces of the antenna mount specified in Department of the Navy, Office of Space and Naval Warfare Systems Command, solicitation number N65236-15-Q-1021. Invent One, LLC was established in 2001 as a small job shop with two young ambitions guys with very limited fabrication equipment. Since then we have become a very well respected and diversified custom contract fabricator focused on producing high-quality, close-tolerance parts and assemblies. We propose to manufacture and assemble the antenna mount to the exact specifications required. We will utilize the expertise of our staff consisting of six engineers, eight engineering technicians, three project

Yes, dependent upon how you file/define your company. For both Single-member LLC’s and Multi-member LLC’s, the individual(s) are all taxed as individuals on their income-tax returns (as owners and individuals). If individual(s) elect to be classified as a corporation (S-CORP), the salary payroll tax falls on the LLC. Any excess profit isn’t subjected to self-employment tax. The (C-CORP) structure allows the LLC to retain all earnings within the business (not passing on any profits) which can help defer tax liability overall. The overall tax savings when pursuing this method tends to be spent in extra accounting and tax filing cost/efforts due to increased IRS

Limited liability Company (LLC): Business’ owners are only subject to limited liability for company’s debts and actions. Owners will be only liable for their own mistakes or negligence that they may show in occasions.