Is an LLC The Right Entity Choice for Your New Business?
An LLC is a hybrid of a corporation and a partnership.
The owners are generally not liable for the debts and obligations of the corporation.
The entity is taxed like a partnership-income and losses of the LLC are accounted for on the owner's individual tax returns.
Can be owned by non-U.S. citizens / resident aliens and other business entities (i.e. one LLC can own some or all of another LLC or C-Corporation).
Can have an unlimited number of members (shareholders of an LLC are known as members).
Less formal than a corporation (no minutes, corporate resolutions, etc. are required, although in order to maintain corporate formalities they are recommended).
Click here to learn the differences between S corporations and LLCs.
View a chart that compares C corporations, S corporations and LLCs
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