subject: Arrangement of LLC: Arranging a limited Liability Company [print this page] Arrangement of LLC: Arranging a limited Liability Company
Setting up a LLC or limited liability company is considered as one of the biggest decisions a company could make. Limited liability company registration which is known to be hard and very complicated will surely affect the present status of the company. But the first thing any business that wants to set up an LLC should do is to get good advice.
Money and time is very essential in a company which is also needed in LLC registration and aside from the company will encounter advantages and disadvantages. Looking for alternatives would be a great help before putting up a business.
Sole proprietorship is considered the easiest form of business registration. This is the easiest way of enrolling an individual who wants to put a public commerce and the nature of the business. Unless there are other licenses to obtain from the local regulatory authorities because of the nature of the business, this means a very straightforward process filling out the required forms, paying the minimal fees, and obtaining a business number that allows the company to begin business. This will enable the individual to start up the new business and consider all of the fundamental things needed in liabilities and tax issues of the business.
A more complex form of business registration is incorporation. Inclusion of business incorporation is registering a business as a corporation and issuing shares in that business to others who wants to be a part of the said business. It is a must that one should ask help from a legal and financial adviser to make sure that the documents are in order in filling acts of incorporation. Arrangement for informing shareholders about the present situation of the company and Board of directors should be present.
Somewhere in the middle of the previous two options is the option to set up an LLC. LLC is much complicated than sole proprietorship and more basic than incorporation. It includes some advantages and benefits. The disadvantages to choosing to set up an LLC are mostly in the time and costs of going through the process. By the time LLC is approved, all disadvantages will be coming in.LLC's main goal is to protect business owners from any form of liability.
This kind of business registration enable the company to put limitations of liabilities to level of investment and liability limitation are some of LLC's requirement. Any form of debts and other form of responsibilities which is caused by the main operation of the business will not be accounted to LLC. The other main reason to set up an LLC is for taxation purposes. Income from a limited liability company is only taxed once and the state does not levy additional income tax on the company or business itself. Not like in company corporation that personal and corporate income are both taxed when dividends are distributed.
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