A
limited liability company, or LLC, is a business structure that offers business
owners several advantages over operating a sole proprietorship or a
corporation. An LLC shields owners from most personal liability but does not
require the payment of corporate taxes. The business owners simply report their
share of company profits as income on their personal income taxes.
To form an LLC, you must file certain
business-registration paperwork with your state, usually through the Secretary
of State's office. Many states provide forms you can fill in to supply details
such as provisions for management, ownership transfers, and profit and loss
distributions. An attorney also can draft the paperwork if you need help.
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