– An LLC provides owners with limited personal liability for business debts, similar to a corporation, and protection from the entity’s creditors.
– LLC owners can elect to have the entity treated as a partnership for federal tax purposes, allowing earnings to flow through to the owners and be taxed only once on their individual returns.
– Active LLC owners can deduct their shares of any business losses on their individual tax returns, allowing them to shelter other income. – An LLC that’s taxed as a partnership can provide special tax benefits to specific partners.
– Choosing an LLC over an S corporation can allow for more flexibility in allocating tax benefits and ownership interests.
– LLCs offer corporate-like protection from creditors while being taxed as a partnership.
– Different states may have different regulations for LLCs, so it’s important to be aware of the specific rules in your state.
https://www.nksfb.com/tax-insights/why-an-llc-might-be-the-best-choice-of-entity-for-your-business/
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