IMPORTANCE OF ENTITY PROTECTION – LIMITED PERSONAL LIABILITY
TYPES OF PROTECTION AND THE IMPORTANCE OF YOUR NEVADA BUSINESS LAWYER
Limited Liability Companies (LLC) (continued)
LLCs are advantageous for numerous reasons. First, an LLC can elect to be taxed as a sole proprietor, partnership, S corporation or C corporation, providing much needed flexibility to different businesses. Second, members of an LLC are generally protected from personal liability for acts and debts of the LLC, unless they specifically agree to undertake such liability through the Operating Agreement. Third, LLCs are “pass-through” entities for taxation purposes, i.e. the LLC members, rather than the LLC itself, pay income tax on the LLC’s income, thus avoiding the double taxation issue seen with C-Corporations. Fourth, LLCs in Nevada are treated as entities separate from their members, maintaining perpetual existence. Fifth, membership interests can be separated and assigned, providing the assignee with membership benefits without transferring an actual membership interest. Prior to making any decision regarding the formation of an LLC we highly recommend that you contact a Nevada business lawyer to ensure that your rights are protected and that the entity you choose best suits your business goals.
Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.
No comments:
Post a Comment