Limited liability company - LLC - What is it?

The limited liability company (aka LLC or LLC) is the strongest asset protection for your business process to replace the corporation sub chapter "S". The LLC provides limited liability to owners of a company and also the limited liability company is licensed in all 50 states.

The LLC is similar to a company and has sometimes been erroneously referred to as a limited liability company. In CLL, individuals are called members and the LLC is more advantageous for small businesses with fewer members. In cases where the LLC is only one member of the LLC can be considered as an entity overlooked that displays the only member as an entity to perform the operations of the LLC. This is against a company owned by a single individual in which the company is seen as the entity performing the operations.

The limited liability company with multiple members avoids double taxation as the members are partners for tax purposes. The IRS Form 1065 and Schedule SE (ie, self-employment tax) are used with the LLC entity. For tax purposes, the LLC in a training association reports its income and deductions with tax return each member tax.

BECAUSE 'THE CHOICE LLC FOR THE PROTECTION OF ASSET?

Courts and clever predators with their contingent fee lawyers to have significantly eroded the benefits and protection of legal persons, allowing little or no asset protection to employees, shareholders, officers or directors. The limited liability company has become the "subject of choice" for all business structures. The corporation sub chapter "S" has now become the white elephant.

Financial benefit LIABILITY COMPANY 'LIMITED

There is a significant financial benefit to the creation of a limited liability company for your business. Your only remedy is the predatory lender '"charging order". Similar to the partnership, the order of charge can be only against LLC user (s) and not LLC. The charging order is obtained subsequent to the creditor to obtain a judgment against you for monetary damages and other frivolous expenses. Your lender can not, and is barred by law, to step into your shoes as a member LLC and take control of your financial affairs of the LLC. This is, in and of itself, the most significant benefit of limited liability company financial.

In all cases, after you invoke with the creditor, "Please, please, please, DO NOT order the charge against me, because it will have more negative effect on how I deal with my existing clients, banks and other enterprises ", the lender will turn around and slapped with a charging order. What creditor does not realize is that you made an important gift. Thanks in large part because of the drafters of the Uniform Limited Partnership Act.

The charging order means that the lender has the right to "all your distributions of capital." So, when there is a distribution of capital to pay the creditor? The answer is never. You are allowed to take a salary, joint venture, to borrow money from a limited liability company, but you will never make a capital distribution in which you will pay the creditor. You have just become your creditor and their contingent-fee, gold digging lawyer's worst nightmare.

Limited liability company TAX ADVANTAGE

The LLC has a significant tax advantage. Someone has to pay taxes so the IRS says. According to the IRS, in a revenue ruling (77-137) states that someone has to pay taxes. Since the person holding the charging order will receive the "K-1", he must pay taxes on income generated by the LLC, even if the creditor does not receive any money from the real business.

The creditor saddled by the charging order is treated as a substituted limited partner for tax purposes, thanks to the IRS, and will suffer the tax consequences, with no ability to enforce payment, dissolution or distribution. Do you think your lender wants to solve? Please note the "K-1" is the annual tax return must be included in taxable income of the recipient for the year similar to the shape of your fund 1099.

The shocking news is that the creditor will be obliged to pay taxes for you. Every 6 months, your lender sends a letter on how well your business is doing and that you want to make sure that he is prepared to pay taxes. At the end of the fiscal year, the lender sends you a copy of a letter with additional K-1, addressed to the IRS requesting a review of the creditor because you want conform tax and that you want to make sure that all taxes are been paid promptly and are up-to-date. Do not have doubts that the lender wants to solve?

When you combine the tax benefit of limited liability and charging order protection with a secure system of protection of property of an irrevocable trust, such as Ultra Trust will receive a financial asset protection fortress against your creditors and other lawyers contingent-fee basis. So the next time there are lawsuits pending frivolous you can relax and sleep soundly at night knowing the company's resources are well protected ....