What Is A Limited Liability Company

2007-03-08 10:33:40

( Insurance )



What is a limited liability company?

A limited liability company is a business that provides limited liability to its proprietors. Unlike a corporation, a limited liability company provides more flexibility in the number of people that can own the business. Limited liability means that the responsibility of the settlement of debts lies in the hands of the company. The law will not permit the usage of personal assets or funds as payment for the company’s financial obligations.

What is a limited liability company?

A limited liability company does not require you to hold an annual general meeting, nor does it require you to submit board minutes and create bylaws thus requiring less paperwork and record keeping tasks. While these documents are not required, it is recommended that an operating agreement be drafted to take the place of bylaws to avoid any future disputes. A limited liability company can be formed with a single person as a board member and owner. It can produce more capital by selling its stocks; however, doing so may not be an easy task. Limited liability companies are liable to pay franchise taxes based on its profits, or on the capital invested in the state. Franchise taxes can also be based on a combination of both; but will wholly depend on the state laws of where the company is formed.

What is a limited liability company?

A limited liability company is an organization that is free to choose how taxes will be charged: whether as a sole proprietor, corporation, partnership, or s-corporation. A limited liability company eliminates double taxation, which means that a company is not obligated to pay both corporate and individual taxes.

In order to set up a limited liability company, you can obtain the assistance of an attorney that specializes in company formations, and not a product liability attorney. A product liability attorney specializes in cases that are a result of damages sustained by an individual as a result of using a certain product. Company registration agents can also offer its services in setting up a limited liability company. If you find the services of an attorney and a company registration agent too expensive, you can also file your company formation documents yourself. You just need to ensure that you make yourself familiar with all the procedures involved.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.