just need to know what does this means ? they are company's or what ? and what is difference between them ? Thanks in advance.
To begin, check wiki as well as your local goverment's site ... it will have the basics to answer your questions perfectly. However, here's my take on it: LLC offers limited liability to its owners. Unlike a Corporation, however, an LLC is taxed as a Partnership or Sole Proprietorship. Just PM me if you need exact links... cause I was in the same boat as you a couple months back Hope that helps out somewhat
There is a description of each type of California business entity on this page: http://www.sos.ca.gov/business/filings.htm Corporation A domestic corporation (Articles of Incorporation) generally is a legal entity which exists separately from its owners. While normally limiting the owners from personal liability, taxes are levied on the corporation as well as on the shareholders. The sale of stocks or bonds can generate additional capital and the longevity of the corporation can continue past the death of the owners. Legal Counsel should be consulted regarding the variety of options available for formulation. Limited Liability Company A domestic limited liability company (Domestic - LLC-1/Foreign - LLC-5) generally offers liability protection similar to that of a corporation but is taxed differently. Domestic limited liability companies may be managed by one or more managers or one or more members. In addition to filing the applicable documents with the Secretary of State, an operating agreement among the members as to the affairs of the limited liability company and the conduct of its business is required. The limited liability company does not file the operating agreement with the Secretary of State but maintains it at the office where the limited liability company's records are kept. Professional limited liability companies are restricted in California at this time.
I am not sure if the concept of LLC exists in India. I have hardly seen anyone using it, also Google search does not return any significant info. Probably, there is some equivalent for of LLC in India.
Yes i want to start a company for my website. But as rohan_shenoy said there is nothing like LLC in India, so i am confused now Any suggestions ?
An LLC is nice because it shields your personal assets from any lawsuits. There may be an equivalent in India or possibly some type of liability insurance for the business. I would consult an attorney from India.
llc limited liability basically you can run up loads of debt as a company then run and the only things banks could take is the assets of the company
That is certainly NOT true. The key word in LLC is LIMITED, personally you CAN be named in a suit as you can be if your incorporated/corporation. and you need to take out a bond, liability, or E&O, to protect your company and yourself. Likely a 1mil liability policy would cover just about any type of suit which could arise from an online business.
The line between an LLC and Corporation has gotten thinner and thinner. With an LLC, you can choose to be taxed as a sole proprietorship, a partnership or as a corporation. You need to make the election. LLC are intended to have the flexibility of a partnership with the liability protections of a corporation.
In Mexico, an LLC is very similar to the RL de CV business type. It's also common in other Latin American countries.
LLCs are taxed like a partnership. An LLC is a pass through entity, meaning the LLC itself does not pay any tax, but the LLC's income and expenses are passed to the individual members who then report the income on their personal tax return.
In California, an LLC has the choice whether to be taxed as a partnership or as a corporation. In any event, the LLC owes a minimum tax of $800 a year, so it would be incorrect to say the LLC itself does not pay any tax.
There's quite a bit of info on LLC rules and taxation at my sites (listed in sig)... To clear up a repeated inaccuracy above, an LLC is actually a chameleon for tax purposes... i.e., for tax accounting purposes in the US an LLC can be treated as basically anything. FYI, I used to teach a graduate level tax course on LLCs to attorneys and CPAs...
You might want to check out Quicken Legal Business Pro 2009 or any previous years edition. Also google search for Nolo legal books --- they are very informative and helpful -- i have used them myself. You can simply use schedule C when doing your taxes with an LLC. But if you can afford it run it through a lawyer. Good Luck Regards, vijay