Source: https://businesslaw.smithrayl.com/limited-liability-companies-blogs.html
Timestamp: 2018-06-24 22:28:13
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Limited Liability Companies -- Blogs :: Noblesville, Indiana Limited Liability Company Lawyer Smith Rayl Law Office, LLC
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Limited Liability Companies -- Blogs
Because limited liability companies, or LLCs, are such a new form of business organization, case law is still developing, LLC statutes are still being revised, and business and corporate lawyers are still developing best practices for using them. Blogs can be one of the best ways for keeping up with the changing landscape, and we've listed some that we believe you may find useful.
Our own Indiana Business Law Blog addresses a wide range of topics related to businesses and nonprofit organizations, including LLCs. All of our posts are tweeted as @IndianaLawFirm. Follow us!
The following seven-part series describes some of the fundamental characteristics of limited liability companies, in part by comparing them to the older, more established business forms of sole proprietorships, partnerships, and corporations.
Part 1 -- It's not a sole proprietorship.
Part 2 -- It's not a partnership.
Part 3 -- It's not a corporation.
Part 4 -- It's a separate legal entity.
Part 5 -- It has a liability shield.
Part 6 -- It offers choices of management structure.
Part 7 -- It's a bundle of tax choices.Tax Treatment of LLCs
The tax status of limited liability companies is one of the most important, yet misunderstood, charactistics of LLCs, both in understanding the historical development of the LLC structure and in using LLCs. The source of confusion is that the legal structure of a business organization and the taxation regime that applies to it are two different things. In the past, that dichotomy was hidden because of the correspondence between the traditional legal business structures and the relevant portions of the internal revenue code. The income produced by a sole proprietorship is reported by the business owner as self-employment income on his or her indivdual tax return. Corporations are generally taxed under one of two subchapters of Chapter 1 of Subtitle A of Title 26 of the United States Code. Those taxed under Subchapter S are commonly called "S-corporations," and those taxed under Subchapter C are commonly called "C-corporations." Partnerships are taxed under Subchapter K, which is entitled "Partners and Partnerships." However, there is no section of the Internal Revenue Code written specifically for LLCs. Instead, they can be taxed as if they were sole proprietorships, as if they were corporations (under either Subchapter C or Subchapter S), or as if they were partnerships. The following blog article discusses in more depth the issue of legal form versus tax treatment.
The Difference Between Legal Form and Tax Status of a Business or Nonprofit
A frequently asked question is whether all LLCs, particularly those with only one member, need an operating agreement. The question is answered in one of the Articles on this website entitled "Yes, Your LLC Needs an Operating Agreement" and by the following post on our blog.
Why should a single-member LLC have an operating agreement?
Here is a list of our most recent blog articles related to limited liability companies.
Cunningham on Operating Agreements
John Cunningham is a New Hampshire sole practitioner who wrote an excellent reference, Drafting Limited Liability Company Operating Agreements. He also maintains a blog that is a wealth of information.
Doug Batey in the Seatle office of Stoel Rives maintains a blog that highlights LLC caselaw from around the country.