| LLC Limited Liability Company |
LLC Limited Liability Company
An LLC is a state created business and tax related legal person or entity.
It is a person because it can sue and can be sued as a natural person.
Thus, it is a separate person.
If you are a member of an LLC, your personal assets are not at stake when your LLC is sued.
Therefore, it is a favorable entity to form as opposed to forming a sole proprietoship.
If you form an LLC, you will also need a business license and a federal tax id. If you will sell taxable merchandise or you want to buy wholesale, you will also need a seller's permit.
Note forming an LLC means that you will have to obtain an LLC state official certificate and have an operating LLC agreement as well. You cannot become an llc unless you register with the state and have the LLC certificate. Some people think that obtaining a federal tax id as an llc is same as forming an llc - Not true!. |
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