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LLC format offers businesses flexibility, plus tax advantages

December 7, 2005 /

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The MDT Disadvantaged Business Enterprise (DBE) Program encourages and supports the participation of companies owned and controlled by socially and economically disadvantaged individuals in transportation contracts.

If you want your business to have the flexibility and tax advantages of a partnership while maintaining the limited-liability benefits of a corporation, consider forming a limited liability company (LLC). Like a corporation, an LLC is a separate legal entity that limits the liability of its members. However, it has the tax benefits of a partnership.

LLCs are also free of many legal requirements that govern corporations (including annual reports, director meetings, shareholder requirements and so on).

In addition, LLCs are a pass-through tax entity, which means that company profits and losses are passed through the business and taxed solely on the members’ individual tax returns.

Full Story: http://sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2005/12/07/BUGCMG3PTC1.DTL&type=business