Hey guys, I am wondering what LLC is. I have seen individuals here own domains or shall I say "companies" and then their suffix is LLC. I am familiar with TM, R, and Inc. but not LLC. What is a LLC and how do I obtain one? Does it protect a company's name or the individual? Thanks for your time - answers definately appreciated.
Limited liability company A limited liability company (denoted by L.L.C. or LLC) is a legal form of company offering limited liability to its owners. It is similar to a corporation, but is suitable for smaller companies with restricted numbers of owners. more
Thanks for that link! Wikipedia is really informative with their explanation of an LLC. Damn...one of its main advantages is not available to me because I live in New Jersey. FRIGGIN' NJ!!! An LLC seems like an interesting oppurtunity in which I may undertake instead of a corporation or other business form. But, can anyone please explain to me what limited liability is? I understand what limited liability is, but I don't understand how this would help at all...would consumers not be able to blame me for their own mistakes or something???
My understanding is the an LLC protects the owner from lawsuits. If the the organization is sued the assets of the owners are not vulnerable. Basically it protects the owver's assets.
it protect owner's personal property. if your company go down, you only loss your company's assests..your don't have to liquidate your personal assest to pay off debt
Well thanks guys for the answers! Seems like LLC is best suited for me right now. Another question: How and WHERE do I register an LLC? Will LLC automatically register the business name too and keep it clear from anyone else using it?
LLC has pass-through tax liability, which means that what ever profit you make from your LLC, as an owner, you are obligated to report that income on your personal tax return. Also, if you make negative profit (loss) that also passes through to your personal income...effectivley lowering your income and tax responsibility. It makes sense to have an LLC for liability reasons, BUT, look at paying aorund 1000 bucks to file your corporate returns each year with an Accountant. You can do that stuff with just TurboTax.
Is it necessary to file the corporate returns with an Accountant, or like you said can I use TurboTax instead? Also are you sure I have to file corporate returns? I didn't see any mention of that for LLC...I thought that was just for corporations.
LLC is sorta like a mix between and a partnership and a corporation. However classification may be different in New Jersey. Trust me, you are gonna want an accountant to file your returns. There are all kinds of things they must keep in check. Check with a local accountant since I am not an accountant I cant be sure on all the specifics. Filing your LLC taxes gives you a K-1 or 6 sheet which you use to report your income on your personal taxes. Also, you will need a lawyer to draft up your articles of incorporation. Alot of stuff to get started with. I would first start out as a sole proprietor and earn some cash first before jumping into the LLC.
Well, according to Wikipedia, it says LLC does not get taxed. Just the individual and based on the profits made with their LLC. An LLC can be owned by one individual, or a group of individuals. :-\ I don't think all that tax filing would be necessary...would it?
Profits basically pass through an LLC to the owners, as does the tax liability. Some states do not allow an LLC to be formed by an individual. I don't think that you have to be a resident of a particular state to form an LLC there, some you must have an address within the state. There are entire companies dedicated to getting you registered as an LLC, corportation, etc. - wherever is best - for a fee. If the advantages you mention would not be available to you in New Jersey, you can probably form it elsewhere.