Georgia LLC: Advantages

February 13, 2009 by admin
Filed under LLC Limited Liability Incorporation

Georgia LLC’s have a number advantages. There are certain advantages inherit in doing business as various corporate entities. Here are some of the advantages people frequently cite when talking about Limited Liability Companies.

Georgia LLC Advantages:

A LLC has a lot of flexibility when it comes to taxes… The LLC can choose to be taxed as a partnership, s-corp, c-corp, or even as a sole proprietor.
Unless the Limited Liability Company chooses to be taxed as a C-corporation it can pass through taxes… meaning, there will be no double taxation.
Avoids corporate formality and requirements necessary to maintain corporate status.
There is some protection from personal liability – personal assets are not open to court judgement in cases that don’t involve fraud or intentional malevolent acts by individuals.
LLC members can devise their own contract. This allows for some variance in management duties and responsibility.
Multiple classes of interest. A LLC can issue many types of stock, whereas a Subchapter S corporation could only issue one type.
Little paperwork & records-keeping in comparison to a traditional corporation.
As a default tax classification profits earned by the LLC are taxed personally at the member level and not at the level of the LLC.
In some states just one individual can create an LLC.

These were some of the major benefits of LLC’s, though there are other benefits if you choose to look into the matter.

If you would like to begin processing your LLC filing with the State of Georgia you can do so HERE.

More Info:

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What is a LLC? >

LLC Disadvantages >

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Georgia LLC: What is it?

February 13, 2009 by admin
Filed under LLC Limited Liability Incorporation

4 Comments

A limited liability company ( LLC or L.L.C.) is a legal form of business company giving some limited liability to the LLC owners. This is a legal business entity in most U.S. States. An LLC is not correctly called a limited liability corporation, it’s always limited liability company.

A LLC is a fusion ofÂ two types of business entities:

partnership
corporation.

The main function of a corporation is the lower liability to owners. There is some limited protection available for actions and debts of the company. Having a corporate entity separate from one’s own personal assets can, in some cases buffer the losses the individual will experience or ameliorate them altogether.

Partnerships offer a pass through of income taxation.

A LLC is seen as being more adaptable or flexible than a regular corporation or partnership and is appropriate for single owned smaller companies.

Some words to be familiar with regarding LLC’s:

Operating Agreement (OA): This is the agreement that is of utmost importance to the success of the LLC entity because it regulates the rights of members and, if any exist, managers.
Members: Members of LLCs are the owners of the limited liability company similar to compared with shareholders as the owners of a corporate entity or the partners in a partnership. Members might be persons, corps., partnerships or even other limited liability companies. A member has a certain limit of responsibility to pay back obligations to the LLC which is limited by the capital contribution defined previously.
Managers: Limited Liability Companies might be member-managed in relation to their membership interest. Quite a few LLC OA’s allow for a manager or even a panel of managers to manage the affairs of the LLC. Managers are either appointed by members, win elections, and can also be removed by members. A member could also be a manager, “Managing Member”.
Articles of Organization: Every Limited Liability Company must register witht he secretary of the state of Georgia. When the articles of organization are filed – these are sufficient.