A partnership is taxed based on the income brought to its owners, while a corporation is also taxed as an entity. Often LLCs are set to dissolve after a renewable length of time. This has been a great boost for those interested in forming LLCs. This can be an owner, employee or an outside consultant. State laws regulate who can hold this responsibility.
Laws regulating LLCs vary greatly from place to place, especially regarding fees and taxation.
Investigate your state statutes to ensure you don't face red tape or need to tweak your organizational structure. Running an LLC may require filing annual reports and other documents. Compared to a partnership or sole proprietorship, an LLC's organization is more complex. Contact an attorney or accountant for help. A company that can pay dividends to shareholders, which are taxed as investors' income and as corporate earnings.