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  Limited Liability Company (LLC) Traits

Who are the owners?

Members

Who manages?

Members typically manage, unless they elect to operate the business by managers

How many members?

All states allow one person LLC formation

Default Tax status?

A single member llc will be treated as a sole-proprietorship, a multiple member like a partnership

Are you able to change the tax status?

An LLC may change its tax status from an LLC a partnership or a corporation

How are business profits taxed?

Pass-Through tax status where income is passed on to the members. At the individual tax rates of members



 

Under each state's Laws, owners of the LLC are not personally liable for its debts and obligations if corporate status is maintained .


 
 
 
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