How Many Owners/Members Can an LLC Have?

A Limited Liability Company (LLC) is a corporation and partnership hybrid that allows owners the freedom of decision making of a partnership along with the liability protection of a corporation. Each state interprets this hybrid status differently and has different requirements for ownership. The majority of states require that an LLC have at least one member, or owner.

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Taxing a Limited Liability Company (LLC)

One of the main advantages of a limited liability company, or LLC, rests in how the IRS treats the business under tax rules. Usually, an LLC is taxed as a partnership or a sole proprietorship, which means that the LLC pays no federal income taxes.

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Does an LLC Have Shareholders?

A limited liability company (or LLC) is not a corporation, but rather a hybrid business entity. It combines the advantages of a partnership and a regular corporation. Even though an individual must file paperwork with a state agency to create the LLC, which includes filing membership and operating agreements, the organizational structure is still more similar to a partnership.

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Reasons to Form a Limited Liability Company (LLC)

A limited liability company (LLC) is a hybrid organization that has characteristics of both a corporation and a partnership. Its members, comparable to corporate shareholder, receive interests in the LLC in exchange for property, money, or services.

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The Differences Between LLCs and S Corporations

While an S corporation and a limited liability company (LLC) are similar in many ways, there are some key differences to consider before deciding which structure to use for your business. If tax-free employee benefits are important to you, you may want to consider either using a C corporation structure, or electing to tax your LLC as a C corporation.

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