What Are The Advantages of a Limited Liability Company?
A limited liability company combines the advantages of a corporation with
those of a limited partnership, but there are several reasons why a limited
liability company may be preferable to either of these entities:
- You can avoid double taxation with a limited liability company. Since the
limited liability company is not a corporation, you can avoid corporate
income tax if you so choose, because income from the limited liability
company can be taxed personally to its members as it would be with a partnership.
As a hybrid entity, the LLC features both the limited liability advantage
of the corporation with the favorable single income taxation of the partnership.
- A member’s interest in the limited liability company may give his
creditors only the charging order remedy, which is the same as with the
limited partnership (LP). Because the limited liability company compares
protectively to the limited partnership, it is an equally attractive vehicle
to title and protect personal assets.
- Neither the limited liability company’s managers nor its members
have personal liability for the debts or liabilities of the limited liability
company. This makes it ideal to hold liability-producing assets or to
conduct a business.
- The LLC is flexible in terms of ownership structure. Your LLC can be owned
by anyone or any entity including a family limited partnership (FLP),
a trust, another corporation.
The Limited Liability Company also has some disadvantages and you must
consider a wide range of factors when you decide upon your best organizational
choice. This decision should involve both your accountant and your attorney.
Contact The Presser Law Firm, P.A. for a complimentary consultation to
learn more about Asset Protection, Business Law, Estate Planning, and/or
any other legal needs that you may have.
The Presser Law Firm, P.A.
6199 N. Federal Highway, Boca Raton FL 33487
(561) 953-1050 or e-mail Info@AssetProtectionAttorneys.com