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