Dana Law Firm > Practice Areas > Limited Liability Companies
Limited Liability Companies
The limited liability company
(LLC) is a relatively new entity for the United
States. They have existed for many years abroad,
but it wasn't until 1988 that the IRS gave
LLC's partnership tax classification, and since
then all 50 states have enacted LLC laws. The
LLC is NOT a corporation. It is NOT a partnership.
It is NOT a sole proprietorship. An LLC is
a blend of some of the best characteristics
of corporations, partnerships and sole proprietorships.
It is a separate legal entity like a corporation
but it is entitled to be treated as a partnership
for tax purposes and therefore carries with
it the "flow through" tax benefits
that corporations do not have. It is very flexible
and simple to run and, like a sole proprietorship,
there is no statutory necessity to keep minutes,
hold meetings or make resolutions, which can
trip up many corporation owners. The owners
are called "members", and no member
is personally liable for the company debts
and profits and/or losses are passed directly
through to the members. Our firm can draft
LLC documents that comply with state and IRS
regulations so that the LLC will be taxed as
a partnership and not a corporation.
