Monday, January 21, 2008

Limited Liability Companies.

In most states, a limited liability company (LLC) is easy to form. This simplicity, combined with the limited liability that the LLC affords to its owners, makes it an attractive choice of entity. To boot, the tax treatment of an LLC can take almost any form that the owner (or owners) chooses. A single owner LLC will be disregarded for tax purposes unless the owner elects for the LLC to be taxed as a corporation. A multi-member LLC will be taxed as a partnership unless corporate taxation is elected. This flexibility has caused people to flock to the LLC as a preferred form of ownership.

The problem with the ease of using an LLC is that people often overlook some of the important non-tax aspects of forming an LLC. These issues are particularly significant when dealing with multi-member LLCs. To find out more about these practical issues and how to avoid them, listen to the podcast on LLC Organizational Issues recorded by Attorney Steven M. Szymanski that can be found at

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