LLC Overview

A Limited Liability Company (LLC) combines the major advantages of a corporation and a partnership. Like a corporation, an LLC allows owners to separate and protect personal assets from the debts and obligations of the business. A properly formed and structured LLC can protect assets like an owner's home, car, or personal savings from a judgment against the business. For this reason, forming an LLC has become a popular alternative for sole proprietors and general partners who have considered incorporating.

LLCs also avoid the "double taxation" of a corporation. Whereas the IRS taxes both corporate profits and shareholder dividends, LLC owners report taxes individually. Owners indicate their share of profit and loss in the company on their personal tax returns. All 50 states and the District of Columbia now recognize this popular business structure.

Form your LLC online in minutes or contact a Business Specialist at 800-818-6082 (toll-free) or 302-636-5440.