Limited Liability Company, Limited Liability Partnership
A Limited Liability Company, Limited Liability Partnership or Limited Liability Corporation is a method of organizing a business to limit the liability of the business to the assets in the business. It is very much like the method used to protect the shareholders in a corporation. Of course, every limit of liability can be challenged in a lawsuit, but the limited liability is a very good umbrella to be standing under. In the tax world, the limit of liability is very different and the managers or members (who are essentially the operators/owners, partners or shareholders) have no umbrella to be under as they are ultimately responsible for the “tax actions” of the business.
A LLC (Limited Liability Company) is usually operated in the fashion of a sole proprietorship, which gives the most flexibility and is easiest to start up and easiest to close. The Limited Liability Company that operates this way files a Schedule C, which is a schedule attached to the Form 1040. The Limited Liability Partnership operates like any other partnership and files a Form 1065, partnership return. The Limited Liability Corporation operates as a corporation and files a Form 1120 or Form 1120-S corporation return. The tax rules are followed accordingly.
Dunn Accounting has assisted many taxpayers/entrepreneurs in the start up phase of their Limited Liability entities. I assist in developing your entity choice based upon your particular circumstances with your vision and goals in mind. For those businesses already operating, I am ready to support you with accounting and tax services suited to the operation.