>> Apr 5, 2016
Not all types of business entities provide the same kind of protection from liability. LLC or a Limited liability company runs along the middle path. That is to say, while it gives you personal liability to a certain degree it also gives you the opportunity to run your own business without the tag of corporate. Both corporations and LLCs provide almost the same kind of protection legally, but they avoid the double taxation issues. The members of an LLC are known as ‘sole proprietors’.
The rules and regulations attached to LLCs vary with each state which is why at times it becomes really overwhelming for a normal business owner to cope with the legal issues. The LLC owned by Alfred L Amato, The Amato Law Firm is a reputed one in Garden City New York. They are presently investigating about United Development Funding and its REIT s (Real Estate Investment Trusts). This is a reliable law firm which can help you get over those legal issues of real estate and tax, etc. in your business.
One of the prime advantage of an LLC is its inherent feature of Limited Liability. This means that if for any reason your company gets sued, even then your personal belongings remain intact, you do not lose anything. Your real estates, bank account all remain safe; at the most you could only lose the money that you had invested in the business. It is however, important to remember that this protection is not all round, there are certain situations that may make you liable to be a criminal.
The income acquired from the business can be treated as your personal income and hence may be exempted from certain federal taxes. Another advantage of an LLC is that the number of owners of such a business entity is not limited. It can range from one to even a hundred.
Alfred L Amato the Manager Partner of Amato Law Firm in New York, will agree that the amount of money that each one invests in the business and the percentage of partnership in an LLC does not need to be equal. In the beginning of the LLC itself, the members write in an agreement the various percentages of business profit and loss that are assigned to every member, irrespective of much he/she invested.
Contrary to the standard corporations, there is a lot of management freedom in an LLC. There is no hard and fast rule that an LLC has to follow regarding meetings, board of members, maintenance of registers and books, etc. This enables the members to carry out their own businesses with much more time to dedicate towards it and also to run it.
However, the disadvantages of an LLC are not something that should be overlooked, even though the advantages are many. The LLCs have to work really hard to find investors because of the legal terms and state filings. The LLCs also need to pay higher fees for filing as compared to other business entities, but if you are a small business owner, this is the business entity that you will need for your business to flourish.