A hybrid entity, generally formed under state law, that combines the pass-through attributes of a partnership with the limited liability of a corporation. The LLC can also elect to be taxed as a C corporation, although most do not choose this taxation. The LLC is normally taxed as a partnership. Income and profits flow through to the members. Profits are subject to income tax in the same way as a partnership.
Losses flow through to members.
Recognition of loss by members is limited by the member's basis, at-risk rules and passive activity rules. The degree of liability protection for the LLC members varies from state to state. Our panel of experts are standing by to help you in your business start-up or organization of your existing business. If we can help with or beyond any of these issues, please contact us . Cash Cow Marketing A division of Quail Oaks Enterprises All rights reserved.