Limited Liability Company
A Limited Liability Company (LLC) is a relatively new business structure allowed by state statute.
LLC's are popular because, similar to a corporation, owners generally have limited personal liability for the debts and actions of the LLC. Other features of LLCs are more like a partnership, providing management flexibility and the benefit of pass-through taxation.
Owners of an LLC are called members. Since most states do not restrict ownership, members may include individuals, corporations, other LLC's and foreign entities. Most states also permit “single member” LLC's, those having only one owner.
A few types of businesses generally cannot be LLC's, such as banks and insurance companies. Check your state’s requirements and the federal tax regulations for further information. There are special rules for foreign LLC's.
For additional information on the kinds of tax returns to file, how to handle employment taxes and possible pitfalls, refer to Publication 3402, Tax Issues for Limited Liability Companies.
Always ask a tax professional if you have tax questions. Get it right the first time you have to resolve an issue with the IRS, if you don't the consequences can be long lasting.
If you owe the IRS back taxes and are in need of a resolution call a company that can help.