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LLC
(Limited Liability Company)
An LLC (Limited Liability Company) is a flexible U.S. business structure combining corporate liability protection with partnership tax treatment. LLCs now represent 75% of new businesses, surpassing corporations and sole proprietorships.
Key benefits: members aren't personally liable for debts, pass-through taxation avoids double taxation, and minimal paperwork. Unlike REITs or C-corps, LLCs have no ownership restrictions or mandatory governance structures. Profits flow to members' personal returns - a $100k LLC profit might incur $15k self-employment tax. LLCs can elect S-corp status for salary/dividend splits. Each state has different filing fees ($40-$500) and annual report requirements.
Key benefits: members aren't personally liable for debts, pass-through taxation avoids double taxation, and minimal paperwork. Unlike REITs or C-corps, LLCs have no ownership restrictions or mandatory governance structures. Profits flow to members' personal returns - a $100k LLC profit might incur $15k self-employment tax. LLCs can elect S-corp status for salary/dividend splits. Each state has different filing fees ($40-$500) and annual report requirements.