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Incorporate your business - Limited Liability Companies. A limited liability company -- the LLC -- is a form of business entity, which combines the "limited liability" feature of a corporation with the often-desired tax consequences of a partnership. The LLC has members (comparable to corporate shareholders), and can elect to have managers (similar to directors of a corporation). Further, the LLC can, but is not required to, have officers.
The LLC form of business entity is used primarily by small businesses that want:
1. Limited liability; 2. The tax benefits of a partnership, and 3. Freedom from specialized tax rules that govern "S" corporations.
There is an increasing trend toward the use of LLC for small businesses, particularly service-oriented businesses.
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