Basics of LLCs
This type of business structure stands for “Limited Liability Company.”
LLC?
This document is filed with the state to officially create an LLC
Articles of Organization
By default, a single-member LLC is taxed like this type of business.
sole proprietorship
This is the term for someone who owns part of an LLC.
member
The main legal benefit of an LLC is the protection of these assets from business debts
personal assets
One major advantage of an LLC is that it protects the owners from this type of personal responsibility for business debts.
What is personal liability?
This person or company receives legal papers and official notices for the LLC
Who is a registered agent
LLC profits usually “pass through” to members and are reported on this type of tax return.
personal income tax return
In this type of LLC structure, the members run the business themselves.
member-managed
Courts may do this to protect an LLC if owners fail to separate personal and business finances.
pierce the corporate veil
The people who own an LLC are called this
members?
Many states require this yearly filing to keep your LLC active
annual report
This financial step helps keep business money separate from personal money.
opening a business bank account
In this structure, members appoint someone else to run daily operations.
manager-managed
Signing contracts in the LLC’s name instead of your own helps maintain this legal protection.
limited liability
An LLC combines features of a corporation with this simpler type of business structure.
partnership
This federal identification number is needed to open a business bank account and file taxes
EIN (Employer Identification Number)
Members may have to pay this type of tax throughout the year instead of once annually.
estimated taxes
This term refers to the percentage of the company that each member owns.
ownership interest
This action helps maintain liability protection by keeping business finances separate.
keeping separate financial records
This is the main reason many entrepreneurs choose an LLC—to protect their personal assets from these.
business debts or lawsuits?
This internal document outlines how the LLC will be run, including rules and member responsibilities.
operating agreement?
An LLC can choose to be taxed as this type of corporation by filing Form 2553
S corporation
This process allows a new member to join the LLC after it has already been formed.
adding/admitting a new member
This type of legal action against a business is one reason owners choose an LLC structure.
lawsuit