LLC Learning Center
We created the learning center, to address many of the questions that come up for the owners of an LLC. The owners, or members, will certainly have many issues that come up during the filing and registration of their initial entity. Don't worry though, the process is quite doable so don't get overly worried.
What is an LLC?
The LLC is basically an entity that will provide its owner with some added benefits for going through the process of registering the limited liability company. The company, or LLC, is just one of the first steps that a business will typically go through, but it is certainly not the only challenge. So, let's talk about a couple of general benefits of the LLC:
- Limited Liability Protection
- Pass through taxation
- Sell interest in the business
FAQ for LLC
In this section, we will address some of the frequently asked questions for having an LLC.
- Why form an LLC? - Most LLC owners decide to file in order to get pass through taxation, as well as limited liability protection.
- What is an Operating Agreement? - An operating agreement is required for your LLC, and it essentially tells the owners, members, how to deal with situations and issues that arise during the running of the business. An operating agreement is less useful for an LLC with only one member.
- How can I build credit for my LLC? - You will want to ensure that you use your business tax ID for all appropriate purchases. This will ensure that your tax id is building credit.
All business owners care about taxes, or they should care about them. This section will serve as a primer for your LLC taxes.
- How is an LLC taxed? - The LLC is taxed as a pass through entity.
- Does the LLC Have different tax classifications? - Yes, the LLC can be taxed as a pass through entity, or more similar to a corporation. You will need to file an additional form with the IRS to make this election.
- What is the tax rate of an LLC? - The tax rate applied to your business, will be based on your total personal taxable income. This means that each member, will most likely have a different taxable rate.