YOUR BUSINESS AUTHORITY
Springfield, MO
by Nimrod T. Chapel Jr.
for the Business Journal
Small business owners want to know how they can avoid corporate taxation, limit personal liability, and at the same time not exclude themselves from the management of their own businesses. For many such businesses, the answer is the limited liability company, or LLC.
The LLC combines the best of both worlds corporations and partnerships allowing business owners to receive pass-through taxation, flexible corporate structure and limited personal liability.
The limited liability company was created in 1977 by the Wyoming legislature. Although LLC legislation is now popular, it did not get much attention until 1988.
In that year, the Internal Revenue Service issued a ruling that granted LLCs organized under the Wyoming statute the advantages of pass-through taxation. This can be a major benefit, allowing profits and losses to pass through to the owners without taxation of the entity itself.
Individuals and groups who are interested in creating a business entity usually have six primary concerns: the way the firm is taxed[[In-content Ad]]
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