Do you want to know more about benefits of LLC in Texas?
LLC, which stands for limited liability Company, is fast becoming one of the most popular business entity among new and small businesses for its less complex corporate structure. Unlike c-corporation, LLC has a flexible structure. It also gives you that pass-through tax benefit, a limited liability and legal protection for your personal assets. With the advantage of looking more legitimate than the other guys.
Attributes of an LLC.
- Owners are not liable for the company’s debts and losses. Only the company can be sued and the owner is protected.
- There are no office titles like directors, shareholders, officers and so on. All owners have complete and equal authority on the company.
- There is no requirement to hold annual meetings or keep records of meeting’s minutes.
- All ownership is expressed in percentage (e.g.Chris owns 30% and Nina70%).
- There could be more than one owner and form a partnership under LLC rules.
Advantages and benefits of LLC in Texas
There are several advantages of the LLC, but here are a few that stand out.
Liability protection: Under an LLC, only the company is liable for the debts and losses incurred in the course of doing business, not the owners which are only responsible for their personal investment in the company.
Pass-through taxation: It is not necessary to file a tax return to the company. Owners report their share of profits and losses on their personal tax returns, which means that double taxation is avoided. The owner simply files schedule C while filing from 1040 during tax season.
Residency status: Owners do not have to be US citizens or permanent residents.
Legal protection: Owners are less responsible for the business debts and commitments.
More credibility: Partners, suppliers, and lenders favor your business more when you formed an LLC.
There could be more benefits of LLC that you could qualify for. Talk to a tax consultant at Green Tree Tax to get more Information and jump start your business.