Quote: "An LLC is a hybrid legal entity having certain characteristics of both a corporation and a partnership or sole proprietorship."
This type of LLC has only one owner and can be treated as a disregarded entity for tax purposes by the IRS.
Formation of an LLC: This topic covers the process of creating a Single-Member LLC, including the necessary steps and forms required such as Articles of Organization, Operating Agreement, and more.
Liability Protection: One of the main advantages of forming an LLC is the protection it provides against personal liability for the business's debts and obligations. An LLC’s owner (known as a member) may not be personally responsible for the company's financial obligations, although there are exceptions.
Taxation: Single-Member LLCs are typically taxed as pass-through entities, which means that the business's income is taxed on the owner's personal tax return. This topic covers the different taxation options available to LLCs, such as default pass-through taxation or electing to be taxed as a corporation.
Management and Ownership: The owner of a Single-Member LLC has complete control over the business and makes all decisions related to its management. However, it is important to consider the legal requirements for maintaining separate business and personal finances.
Capitalization: Capitalization of a Single-Member LLC refers to how much money is invested in the business to get it off the ground. This topic covers how LLCs can be capitalized, including through personal investment, loans, or crowdfunding.
Naming and Branding: Coming up with a name and brand for a Single-Member LLC is an essential part of getting started. This topic covers the legal requirements for naming a business and how to create a unique brand.
Compliance: There are several legal requirements that Single-Member LLCs must follow to stay in compliance with state and federal law. This topic covers the various regulations, licenses, and permits required for operating an LLC.
Hiring Employees: The hiring process is an important legal obligation of Single-Member LLCs. This topic covers the necessary steps required to employ new workers and address any legal issues pertaining to employment relationships.
Marketing and Sales: To succeed as a business, Single-Member LLCs need to consistently attract new customers and retain existing ones. This topic covers marketing and sales strategies for promoting the business and attracting new clients.
Accounting and Recordkeeping: Single-Member LLCs need to keep accurate financial records to remain in compliance with regulations and tax obligations. This topic covers accounting and recordkeeping requirements, as well as software and methods for tracking finances.
Traditional LLC: This is the most common type of LLC, where the owner has complete control over the company.
Professional LLC: These are LLCs that are run by licensed professionals, such as doctors or lawyers, who are limited to only providing service within their field.
Series LLC: A series LLC is one that has separate divisions within it, each of which can have its own assets, members, and managers.
Low-Profit Limited Liability Company (L3C): This type of LLC is created for companies that are focused on a social mission, rather than generating profits.
Holding Company LLC: These LLCs are created to hold assets, such as real estate or stocks, but do not actively engage in any business operations.
Cooperative LLC: These LLCs are created to provide benefits and profits to their members, who work together to achieve a common goal.
Single-Member LLC: This type of LLC is owned by a single individual who still enjoys the benefits of limited liability, and has complete control over the company.
Quote: "LLCs are well known for the flexibility that they provide to business owners..."
Quote: "depending on the situation, an LLC may elect to use corporate tax rules instead of being treated as a partnership..."
Quote: "under certain circumstances, LLCs may be organized as not-for-profit."
Quote: "In certain U.S. states, businesses that provide professional services requiring a state professional license... may be required to form a similar entity called a professional limited liability company (PLLC)."
Quote: "The primary characteristic an LLC shares with a corporation is limited liability..."
Quote: "the availability of pass-through income taxation."
Quote: "When an LLC is formed, it is said to be 'organized', not 'incorporated' or 'chartered'..."
Quote: "its founding document is likewise known as its 'articles of organization'..."
Quote: "ownership in an LLC is represented by a 'membership interest'..."
Quote: "a document evidencing ownership rights in an LLC is called a 'membership certificate'..."
Quote: "it is more difficult to pierce the LLC veil because LLCs do not have many formalities to maintain."
Quote: "Membership interests in LLCs and partnership interests are also afforded a significant level of protection through the charging order mechanism."
Quote: "Limited liability company members may, in certain circumstances, also incur a personal liability..."
Quote: "in cases where distributions to members render the LLC insolvent."
Quote: "most American courts have held that LLC members are subject to the same common law alter ego piercing theories as corporate shareholders."
Quote: "Internal operations of an LLC are further governed by its 'operating agreement'."
Quote: "ownership measured in 'membership units' or just 'units' and at other times simply stated only as percentages."
Quote: "a 'member', rather than a 'shareholder'."
Quote: "it is a legal form of a company that provides limited liability to its owners in many jurisdictions."