Thread: General Overview of a LLC

The limited liability company (LLC) is best described as a hybrid business form. It incorporates the liability protection of a corporation with the tax treatment and ease of administration of a partnership. The LLC is America's newest form of business organization; the great bulk of laws allowing LLCs in the United States were passed in the 1980s and 1990s. The watershed event in the rise of the LLC was a 1988 IRS ruling that recognized partnership tax treatment for LLCs. Within 6 years, 46 states authorized LLCs as a business form.
LLCs enjoy pass-through taxation-thereby sidestepping the double taxation burden borne by C corporations. LLCs file an informational tax return (much like a partnership) but the entity pays no tax. The members (owners) report their share of the LLC's profit or loss on their individual tax returns. A note-of-caution, some states including Texas have reformed their tax laws to include a Franchise Tax for LLC's and PLLC's on profits over a certain amount.
LLCs can be formed through filing a charter document (typically called articles of organization or as in Texas Certificate of Formation) in the appropriate state and paying the required filing fee.

Thanks for the info. If there is a judgment against an LLC company as a debtor, does the owner's personal bankruptcy protection shield the LLC asset from liquidation?

Originally Posted by t-wins

Thanks for the info. If there is a judgment against an LLC company as a debtor, does the owner's personal bankruptcy protection shield the LLC asset from liquidation?

The whole concept of a LLC is to seperate the owner(s) personal liability from the companies liability. So, YES.

After performing the requisite extraction testing, as well as providing the
appropriate physical data and use description of the food contact material,
a Food Contact Notification may be filed with the US FDA that will take up
to 90 days to be approved. The key is reading the highly technical guidelines
about what data to submit and in what form.

Above mentioned inferences might be true for USA but it is not for the rest of the europe because liabilty of partners of LLC with respect to tax and other fiscal responsibilities falls on the manager of the company in case it is not collected from assets of LLC.

Originally Posted by t-wins

Thanks for the info. If there is a judgment against an LLC company as a debtor, does the owner's personal bankruptcy protection shield the LLC asset from liquidation?

the main purpose or reason to open an LLC is to omit liability