0
A limited liability company, otherwise known as an LLC, is a kind of business that is best described as a hybrid of corporate structure and a lower liability partnership. Limited liability does not mean that in all cases the owners of the company are not liable for the actions of the company; in certain cases, especially those involving misrepresentation of the nature of a companies primary characteristics, a LLC can be forced by a court to have its head partners held accountable for certain actions. However, for the most part a LLC is a good option for reducing liability, as it is not, technically, a corporation, but shares many similarities with it. In this way, a limited liability company can avoid certain forms of income tax and legal attacks.
Limited liability companies, for most interested parties, are a consideration precisely because the founder can incur debts and liabilities on behalf of the company without a personal risk of being considered a target by creditors. This allows a business to perhaps take more risks than would otherwise be possible, allowing a greater control and breadth over potential market concentration. It also reduces a degree of paperwork; a LLC, unlike a true corporation, does not have meeting requirements or place limits on the nature of its ownership.
While forming a limited liability company is a completely serviceable option for many new and experienced entrepreneurs, statutory provisions can make it difficult to raise starting capital in many situations. The unfortunate reality is that LLCs are not a type of company that is well established among investors, and many scoff at the credibility of an entity that is not a full fledged corporation. Being by nature a middle ground, a LLC is, however, at a slight advantage in comparison to a sole proprietorship in efforts to attract investors.
Limited Liability Companies have several tax related drawbacks. Many states demand annual fees for LLC registration, in many places exceeding 400$. The margin tax is especially burdensome on newly formed companies, imposing a fee for every instance of apportionment undertaken by the LLC in question. This can in some cases be avoided by modifying your LLC registration to conform to PLLC standards, especially viable if your business offers a specific service to clients. This option has the side effect of not offering liability exclusion for malpractice, so its use should be carefully considered.
Add your answer:
Earn +20 pts
Is Life and Casualty Insurance Company of Tennessee a viable company?
Yes it is and is now owned by American General Life and Accident which is based in Nashville TN. Phone 1-800-888-2452
Cutting job and outsourcing what does it means?
This simply means that the company or business is looking for a viable solution that will cost them less than what they're paying for right now.
What is another name for a business making money?
Viable business or thriving business. Both mean about the same thing. A business in good shape..
Is Integon Insurance CO a viable business entity?
Yes it is. Integon Insurance is a part of GMAC Insurance group and is based in North Carolina.
Are there other strategies or approaches where you can assess your PECs Explain how these strategie s will become more useful in selecting a viable business venture.?
KAYAAT THORJACK
What is a good sentence for the word viable?
The current methods are not working and we need a viable alternative. Without water and sunlight, the plants are not viable.
Are vitamins a responsible alternative to poverty induced clinical malnutrition?
Vitamins are not a viable alternative to poverty induced clinical malnutrition
Is vocational school a viable alternative for students who are having trouble with academics?
Yes, vocational school is a viable alternative for students who are having trouble with academics. One can get many jobs based on skills learned in vocational school.
Is it legal for a leasing company to disable leased equipment in Texas?
If the leasing company owns the equipment AND they are not being paid per the provisions of the lease they can legally take possession (re-possess) their assets. Disabling it could be a viable alternative to physically re-possessing it.
Can I replace my pool chlorine system with an alternative technology?
There is nothing whatsoever to stop you from using what ever in your jugement is a viable alternative pool sanitizing system.
Does the option of registering a business as one person company available in India?
Yes, the option of registering a business as a One Person Company (OPC) is available in India. Introduced under the Companies Act, 2013, OPC allows a single individual to start and own a company with limited liability, which was not possible before. This structure is designed to encourage individual entrepreneurship by offering the benefits of a company, such as limited liability and separate legal entity status, while simplifying compliance requirements. The OPC can be registered by an Indian citizen who is at least 18 years old and a resident of India. The single owner must also appoint a nominee who will assume control in the event of the owner’s death or incapacity. This model provides a viable option for solo entrepreneurs who want to formalize their business with legal protections and operational advantages.
What is a viable company?
any self sustaining independent company capable of growth
How do you use viable in a sentence?
After conducting market research, we identified several viable solutions to increase our company's profits.
What is Venture Travels?
Is Venture Travel a viable company??
Why do you need fossil fuels?
Because to date there is no viable alternative to fossil fuels, that are plentiful and cost effective.
Why would establishing viable marine ecosystems be a good alternative for man made freshwater lakes?
please answer
What was the significance of Claude-Achille Dubussy's musical compositions?
It represented the first viable alternative to tonal music
