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Olen will generate all of the legal documents you need and
will file the required formation documents with the Secretary of
State
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We can
form your LLC in any of 50 states.
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We can offer you an
company formation
package that's right for you.
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Our specialists are on hand to
explain the process clearly and simply.
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We're
competitively
priced and much less expensive than a lawyer.
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your LLC in NY
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your LLC in NJ
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A limited liability company (denoted by L.L.C. or LLC)
is a legal form of business company in the United States to its
owners.
In that respect, it is similar to a corporation,
and is often a more flexible form of ownership, especially suitable
for smaller companies with a limited number of owners. Unlike a
regular corporation, however, a limited liability company with one
member may be treated as a disregarded entity, so the member is often
singled-out as a person performing the actions of the LLC. A limited
liability company with multiple members is typically treated as a
partnership for tax purposes, thereby avoiding double taxation. An LLC
can elect to be either "member managed" or "manager
managed."
Choosing to operate as member management creates a flat member or
partnership structure. Choosing manager management creates a
two-tiered management structure potentially convertible into a
corporation, with the attendant tax consequences. LLCs use IRS Form
1065 and Schedule SE (Self-Employment Tax). It is often incorrectly
called a "limited liability corporation" (instead of
company). LLCs are organized with a document called the "articles
of organization", or "the rules of organization"
specified publicly by the state; additionally, it is common to have an
"operating agreement" privately specified by the members.
Operating as an LLC form of partnership does not mean that
appropriate federal partnership tax forms are not necessary, or not
complex. As a partnership, the entity's income and deductions
attributed to each member are reported on that owner's tax return.
LLCs can lose their tax advantage without the partnership
structure. The possible label "disregarded entity" for
income tax purposes singles out the one-member owner of an LLC as
actually earning income and deductions directly. It is the owner,
then, who reports as a business proprietor, rather than as an LLC
operating an active trade or business. An LLC passively investing in
real estate and owned by a single member would have its income and
deductions reported directly on the owner's individual tax return on a
Schedule E tax form. And an LLC owned by a corporation--in other
words, an LLC with a single corporate member--would be treated as an
incorporated branch and have its income and deductions reported on the
corporate tax return, creating double taxation.
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