Startup
LLC
Texas
LLC tax advantages?
I recently started a small business and am considering forming a limited liability company (LLC). I understand that LLCs provide certain protections for business owners, but I am not clear on the tax advantages of an LLC. I would like to know what kind of tax benefits I could expect if I form an LLC.
Answers from 1 Lawyer
Answer
Startup
Texas
Jimmy V.
ContractsCounsel verified
LLCs are "pass-through" entities for tax purposes. In other words, there is no income tax due on the company level. The distributions "pass through" to you and you report them on your personal tax return. This prevents double taxation.
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What are the benefits of LLC formation?
I am a small business owner looking to expand my operations and protect my personal assets. I am considering forming a Limited Liability Company (LLC) and would like to understand the benefits of doing so. I understand that an LLC provides limited liability for its owners, but I am also interested in the tax implications and other benefits of LLC formation.
Jimmy V.
The LLC has three advantages over other types of business entities: (1) it creates a liability shield for the owner's personal assets in case the business gets sued; (2) the LLC has "pass-through" taxation - in other words, unlike a corporation, there is no tax due at the entity level. All profits and losses "pass through" to the owner and are accounted for on the owner's individual tax return; (3) the LLC is a simple and flexible business structure that does not require as much paperwork as a corporation.
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LLC
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How is ownership defined in LLC formation?
I am starting a new business and am looking to form a limited liability company (LLC). I understand that an LLC is a business structure that can help protect my personal assets from any debts or liabilities of the business. I am looking to understand how the ownership of the LLC is defined and how it affects the legal and financial structure of the LLC. I am hoping to find out what type of paperwork and/or agreements need to be drawn up in order to set up the LLC properly.
Jimmy V.
Owners of LLCs are called "Members." Members make an initial contribution of cash or other property to the LLC in exchange for their Membership Interests in the LLC. The Members can run the LLC themselves if they like. This is common in LLCs with one or only a few Members. If there are many Members, they may decide to appoint a Manager to run the LLC. Managers can be owners, and vice versa.
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LLC
Alabama
State of Texas - questions regarding an online business (Nanny Placement Agency) in the Houston area.
Seeking an attorney for advice as to what I need to start up an online business, specifically a Nanny Placement Agency. Do I need a license in the state of Texas and what do I need to protect myself against possible unforeseen lawsuits. I will be living in the Houston area soon but want to start my online business remotely (Michigan) asap. I have an LLC in Michigan already, I assume I may need one in Texas as well, is this correct?
Jimmy V.
Hello, I can help you with this project. I’m a semi-retired, long-time Texas attorney with substantial experience in business and corporate law. I counsel startups and small businesses, help them set up corporations or LLCs across the country and draft a variety of contracts and corporate documents. You should have an LLC for liability protections, whether it's in Michigan or in Texas. Actually, you would be better off organizing a Texas LLC because your Michigan LLC would have to register in Texas so you would be paying extra fees. There is no licensing requirement for nanny agencies in Texas. If you are interested, I will make you a flat fee bid to set up an LLC for you here in Texas. Thx. JV PS For more information about business entities, download a free copy of my ebook "Should Your Small Business Become a Corporation or an LLC? A Look at Liabilities, State & Federal Taxation & More!" from my website types-of-business-ownership.com
Read 1 attorney answer>Startup
LLC
Illinois
LLC and management structure?
I am in the process of starting a business and am considering forming a Limited Liability Company (LLC). I want to understand the management structure of an LLC and how it works in practice. I am interested in how the management structure can help protect me from personal liability, and how it can provide a framework for decision-making and dispute resolution.
Talin H.
Hi, congrats on starting a business! You're asking all of the right questions. The short answer is that your LLC operating agreement can spell out in as much detail as you want what decisions the Manager of the LLC is free to make on their own, and what decisions require a vote from the other Members. You can also elect to have a multi-manager LLC, in which each Manager is responsible for different aspects of the business, such as day-to-day operations versus overall business strategy versus capital raising. Again, each one of these Manager roles can specifically delineate what decisions and actions the Manager can take automatically, without other Members' prior approval. I specialize in business and corporate transactions and have drafted 100s of LLC operating agreements. I would be delighted to help you. Please reach out at talin@hitiklaw.com or call my office at (312)685-2292.
Read 1 attorney answer>Business
LLC
Texas
Change from S-Corp to an LLC?
I made an llc when I bought a rental property in houston. But I made it a s corp.
T. Phillip B.
Making the change isn't hard and is a filing with the IRS. However, you are going to need to talk with someone (tax attorney or CPA) about potential tax consequences for any properties already owned by the LLC.
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