Budget strapped states are delaying tax refunds because of the economy putting a strain on its funds.  States such as Hawaii, Rhode Island, New York have delayed paying its taxpayers until July which is the beginning of their fiscal year.  The states are delaying these payments until it makes sure that it has enough to pay its debts. 

However some states just don't have the manpower to process its tax refunds due to budget cutbacks.  Therefore the delay in this case is just a slower than normal processing time to give refunds back to its tax payers.

The delay in sending out refunds is angering many of its residents.  The states response to these is that they are tapping into funds left for reserves.  States are budget conscience now as much as most of the public.  Many people and states are trying to adjust to the economic downturn by pinching pennies and saving as much as it can.

One of the advantages of a LLC is that it has pass through taxation.  What pass through taxation refers to is the tax structure for LLC's and Scorps.  Pass through taxation allows the owners of the LLC's to have the LLC's profits "pass through" the LLC and report the income of the LLC on the individual's taxes. The benefit to this tax structure is that the LLC doesn't have have "double taxation" as with corporations.

In comparison with a C corporation, the corporation pays a tax and any profits distrubuted to the shareholders is taxed again.  In essence it is double taxation.  However, for corporations, you do have the opportunity to file a Scorp filing with the IRS to change the tax structure of the corporation to mimic the same tax structure of the LLC.  However, the penalty of filing the S corp with the IRS is that you limit the growth of the company to a maximum of 75 shareholders.  This limit is not an issue as most family run corporations will never have more than 75 shareholders.  As the company grows bigger and needs more capital, it may change the tax structure back to a C corp to raise more capital by selling shares to investors. 

The LLC is very advantageous for many small business because of the tax structure and liability protection.  You can form a LLC today.