What is a LLC?

A Limited Liability Company (LLC) is a type of business structure that limits the personal liability of the business owners of the company. It is a popular choice for small businesses in Texas and across the United States due to its relatively simple setup and the liability protection it provides. In Texas, LLCs are formed by filing articles of organization with the Texas Secretary of State. An LLC has the benefits of both corporations and partnerships, including limited liability protection for its owners and pass-through taxation. This means that the LLC itself is not taxed, but rather the profits and losses are passed through to the LLC owners, who are then taxed on their individual tax returns. As compared to a corporation, the LLC is much less structured and is therefore much easier to manage and operate. Additionally, LLCs have much fewer formal requirements, allowing them to be flexible and tailored to fit the specific needs of the owners. An LLC also allows the owners to divide ownership and profits as they choose, without the need to share ownership with outsiders or to file documents with the state. In summary, LLCs are a great way for small businesses to protect the owners’ personal assets, while also allowing the owners maximum control and flexibility in managing and structuring their business.

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What is a LLC?

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