LLC
WHAT IS AN LLC?
LLC stands for Limited Liability Company. An LLC is a legal entity that is separate and distinct from its owners. An LLC protects personal assets (home, car, bank account) in the event of a lawsuit. LLCs are most commonly used for operating businesses (you can have multiple businesses in one LLC) or for investing in real estate (when to form an LLC for real estate). This hyperlink in blue will lead to this all of the writing in red will be on a separate page llc for real-estate.
The number one reason to form an LLC is for personal asset protection. By forming an LLC you create a “protective wall” between your business and your personal assets. Your personal assets include everything that you own: your home, cars, trucks, bank accounts, investment properties, boats, jewelry, tractors, boats, land..etc . If your LLC is sued, creditors can only attack the assets of your LLC to settle those business debts and liabilities. Your personal assets are safe and secure. They are not considered a part of the business. If you don’t form an LLC, your personal assets are at risk if your business is sued.
If your business currently operates as a sole proprietorship, changing to an LLC is in your best interest. For a variety of reasons-including the fact that an LLC protects the owners from the debts of and any judgments against the business-it’s the preferred form of business organization.
For individual business owners, the LLC offers a one-person LLC form, which is taxed as a sole proprietorship. In addition to offering the owner all-important limited personal liability exposure, the LLC retains important tax benefits of the sole proprietorship, such as: owner compensation in the form of distributions of profit, which are taxed at the individual owner’s potentially lower marginal tax bracket (the tax rate applicable to the next dollar of taxable income the owner earns); and pass-through of business losses, offsetting the owner’s other nonbusiness income.
For businesses with multiple owners, the LLC form offers similar tax benefits, plus the added advantages of a corporate form. If the owners or members of an LLC do nothing, their LLC will be taxed as a partnership; however, they can elect for their LLC to be taxed as a corporate entity-typically the preferred option. And within that option is another option to elect to be taxed as either an S or a C corporation.
If the owners of the LLC want to keep the business’s profits in the LLC in order to facilitate the growth of the business, the preferred option is a C corporation. Under this form, the LLC’s profits will only be subject to the beginning corporate tax rate of 15 percent-presumably less than the owner/member’s personal marginal income tax rates. And if any of the LLC’s owners/members want to receive compensation, they can be paid W-2 wages for their business-related work efforts.
If, on the other hand, the owners of the LLC want to take all or some of the profits out of the business, the preferred election is an S corporation. Each owner or member can receive his or her pro rate share of the LLC’s total bottom line profit as distributions of profit (taxed at their respective individual marginal income tax rates, but not subject to Self-Employment Tax).
There are a number of additional benefits of an LLC, taxed as an S corporation, over the traditional straight S corporation form of business organization. These additional tax benefits include the ability to have:
*More than 75 business owners.
*A nonresident alien as an owner.
*A corporation or a partnership as an owner.
*More than 80 percent ownership in a separate corporate entity.
*Disproportionate ownership-ownership percentages that are different from each respective owner’s investment in the business.
*Flow-through business loss deductions in excess of each respective owner’s investment in the business.
*Owners/members that are active in the management of the business without losing their limited personal liability exposure.
You should strongly consider selecting the LLC form of business organization if you are a one-person owner of your business or if you have other business partners. In essence, what this means is that any business owner, given the tax climate created by current IRS tax laws, should be an LLC, either taxed as a sole proprietorship, in the case of one owner, or as either a C or an S corporation when multiple owners exist.
What our company offers you!
Business Services 4 All, LLC offers you the filling of your LLC in Texas (please request a quote for another state) and if selected the opportunity of being taxed as an S-Corp, so that you get the tax benefit of the S-Corporations (which saves you $$$ on your taxes). We will also get you set up with D&B-which is a corporation that offers information on commercial credit as well as reports on businesses. Most notably, Dun & Bradstreet is recognizable for its Data Universal Numbering System (D.U.N.S.) numbers; these generate business information reports for more than 100 million companies around the globe. We will establish one business account for your business, so that you can establish business credit and a merchant account for your business. Business Services 4 All will also get your new EIN number under your LLC. You may currently have an EIN number, but that is associated with your social security number and not your business! This is where that phrase separating your personal assets from your business assets comes into play! We include your operations agreement, articles of inc and if you are in a covered area you will get an additional line of business credit with mobile service for a year. You get more than just an LLC with our company!!! At the price of $850 which is normally $1299 (let’s not forget the taxes!) They will have the option to add an investor ready business plan normally $2500 which we have it on sale for $1299. Add it to your LLC package for only $299 today!
Some business owners might think operating as an LLC is basically the same as being a sole proprietorship. In reality, though, incorporating your business as an LLC is the next step forward for an emerging entrepreneur, and the distinction will set you apart from your competition.
The primary difference between these two structures is that you receive some liability protection by incorporating as an LLC. This is important for businesses owners who have personal assets — especially if they use those assets to conduct some of their business. In the end, however, both of these structures allow owners to report their business income on the proprietor’s personal tax returns.
There is nothing more frustrating and confusing than starting a business and everyone tells you to do this and that and they all tell you to do different things! It can be overwhelming especially when it’s your very first business. If you are like the vast majority you weren’t taught how to conduct business in school or at home and that’s fine! Even if you have a business degree they don’t teach you this in school. It’s all through experience and that is the best teacher!
We are eliminating the frustration and confusion from launching your business! We treat your company as if it our own by going above and beyond for you and your company. We want to make sure that you are on the right track and whatever you do is best for your company because that’s what’s important. Many times starting out we want to do what we like, but here at Business Services 4 All we educate you. In business it’s not about what you like, it’s about your customers! That is why you went in business right to solve a problem? If you’re not solving a problem then you shouldn’t be in business. We also understand that everyone is not a fit for our services because we want what’s best for you and if it’s something that is going to hinder you from succeeding we do not want to be a part of it.
We are here to protect you as well as our company this is why you will receive a contract with certain services because it protect you as well as us. It may take a few extra minutes, but it is worth your future in business.
We offer a variety of services as you can see on the site and we do this to help you! We are pretty much a one stop shop and if it’s something that we don’t do we will refer you to someone who can and is very knowledgeable on the subject because we care!
