What makes the LLC even more attractive as a form of doing business or holding assets is that the entity may actually be disregarded for income taxation purposes. That is, the owners of the entity claim all income generated by the entity, and take the ordinary business-related deductions against the income, even though there is an independent and legally recognized business entity actually generating the income. It is a “pass-through” entity and allows the owners to be taxed as a sole-proprietorship or general partnership, and still get creditor protection for the activities of the business. Compared to the double-taxation experienced by owners of C Corporations, and the limitations that apply to S Corporations (which are also “pass-through” entities), the LLC has more to offer with less drawbacks for more business owners and investors than ever. Learn more by downloading!
Zimmer Law Firm
Estate Planning & Elder Law Attorneys
