Llc Case Study

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,

Limited Liability Company (LLC) combines the tax advantages of a partnership with the limited liability aspects of a corporation. LLC’s are governed by the Uniform Limited Liability Company Act (ULLCA). All members of the LLC enjoy limited liability unless there is serious misconduct is committed by said member(s), or a member fails to follow through on an obligation. All this should be outlined in your preformation contract. You will have more flexibility with taxation and options on how to manage the company. It would be advisable to also have an Operating Agreement. This will dictate how management will be hired and fired, division of profits, how to transfer interest in the event a member chooses to opt out or dies. What steps to take in the event of dissociation of a partner, and if it causes the dissolution of the LLC. Most importantly how the members vote in the LLC. The weight of the members vote is in accordance with the member’s capital

The last of the four types includes the limited liability company, also known as a LLC. An LLC is an unincorporated form of business that carries characteristics of all of the other three forms of business. An LLC can choose to be taxed as a partnership, the owners can manage the business, and the owners have limited liability for debts and obligations of the partnership. LLC’s are

By forming an LLC John can take advantage of deducting certain business expenses. Purchases relating to business can be written-off. By deducting these expenses, John will be able to reduce his taxable income.

The managing member’s share of the profits is considered earned income and is therefore subjected to the self-employment tax. Also a member of an LLC cannot pay themselves wages from the profits of the LLC. “The great flexibility that is afforded by an LLC makes it one of the most popular types of business formations used” (Waller).

Limited liability company is a separate entity that separates the owner of the business. LLCs are no longer new and untested legal entity, they recognized in all fifty states and have established case law and statutes.

A Limited Liability Company (LLC), as the name states, has the ability in keeping your liability limited as a professional owner. This is fundamental in protecting your personal assets by separating them from your business assets. In choosing to run a LLC company, we have agreed that a manager-managed business would be conducive to our field of industry. Although one person will have the authority in overseeing the daily tasks of running the business, all non-managing members will still have an input in all decisions in regards to the enterprise. Contract negotiations and employment are just a few of the joint duties of all members. Running an LLC has many advantages like flexibility, limited liability in business related debts, pass-through taxes, and reliability standing. However, with perks there are always some downfalls, such disadvantages consists of being subjected to self-employment tax or if a member departs the LLC ceases to exist, although an Operating Agreement can reverse this challenge. As you can see, running an LLC has more pros, out weighing the cons of such companies.

PRT LLC is one of the leading pharmacy benefit management company in the United States. The company has over 2800 employees all is the largest privately owned pharmacy benefit management company in the United States. The company is headquartered in Eagan, Minnesota, with 3 other locations in Minnesota. PRT has 15 other locations in western, eastern and southern United States. The company operates mainly to offer pharmacy benefit management services for a major health insurer, TCTS. It also manages Drug Utilization Review for TCTS, the U.S government via Center for Medicare and Medicaid Services (CMS) and the enrolled member or patient.

Fiest, VCP LLC, is a Vocational Counseling and Placement service the UW Madison Wisconsin hired as a “job coach” for me. To make things easier, I will refer to Fiest VCP, LLC as Fiest. When referring to Fiest VCP, LLC as Fiest, this will include everyone working at Fiest, i.e. Kim and/or Haley.

The first and most notable benefit of an LLC over a Sole Proprietorship are potentially the tax benefits. Even though you are the sole owner of Kyle Grocery Stores, you have many managers and investors that are accumulating a steady amount of wages as a result of the companies increasing revenues and reducing of costs. However, all of the company's revenues are still yours and still go on your tax return. However, as a member of an LLC, each one your managers and you can report on your own individual tax returns provided the LLC agreement be set up the right way.

In this business formation the business takes on all liability removing any personal liability from all involved partners.

A limited liability company is a hybrid type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. The "owners" of an LLC are referred to as "members." Depending on the state, the members can consist of a single individual (one owner), two or more individuals, corporations, or other LLCs. Unlike shareholders in a corporation, LLCs are not taxed as a separate business entity. Instead, all profits and losses are "passed through" the business to each member of the LLC. LLC members report profits and losses on their personal federal tax returns, just as the owners of a partnership would.

Nellie and Philip Akalp founded their first incorporation service called MyCorporation.com in 1997 then sold it in 2005 to the makers of Quickbooks and Turbo Tax and were able to retire. However, they soon found that they hated retirement and needed other avenues to keep them happy. Since they were entrepreneur's at heart, they started another incorporation service which is what they have today - CorpNet. Philip is actually a licensed lawyer by trade; however, he now handles the internet marketing, product development and more at CorpNet, which he prefers over his former trade.

The organization I have chosen to write my research paper on is called Compasion LLC., located in Norfolk, Virginia. Compasión LLC is a Mental Health Agency that provides services to children in the school environment and in-home. Compasión LLC was established in 2010 and I was their first Office Manager hired. I had the opportunity to enhance their policy and procedure manual and on boarding procedures.

The advantages to a LLC are: 1) Reduction of personal liability. A sole proprietor has unlimited liability, which can include the potential loss of all personal assets. 2) Taxes. Forming an LLC may mean that more expenses can be considered business expenses and be deducted from the company’s income. 3) Improved credibility. The business may have increased credibility in the business world compared to a sole proprietorship. 4) Ability to attract investment. Corporations, even LLCs, can raise capital through the sale of equity. 5) Continuous life. Sole proprietorships have a limited life,