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Can someone give me the long and short of how an LLC works?

1K views 17 replies 12 participants last post by  Walleye Steve 
Since you brought up the topic of L.L.C. Vs. a Corporation there are differences.

First of all an L.L.C. is a corporation in which you need a license to do business. Such in the case of a Real Estate business, doctor, lawyer, etc... It is a way to shelter yourself "professionally" from the licensed work you do.

In a Corporation, you can do not only the work or occupation you enjoy or purpose which it was formed under, but also any other legal enterprise that your hearts content.

Both entities have the ability to print and sell stocks, encumber debit, and enter into legal agreements (like buying real estate, auto, etc..) It is the "entity" that will be the vested owner with the board of directors and stock holders who direct the asset.

The trouble with an L.L.C. is that many of them walk the fine line of being a DBA and if any circumstance which might require that the "entity" needs defense from a law suit, the L.L.C. is easily defeated and the corporate veil is pieced (judgment crosses over into your own personal assets.) Many good lawyers suggest to file a Corporation, as opposed to an L.L.C. for this very fact.

You may file as an (S) corporation in either "entity" see your trusted tax attorney for this help. As for the annual filings, it it just a simple form sent in with $$$$, the way the state not only gains revenue but also to see if you are still in business.
 
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