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Why an LLC?


A Delaware Limited Liability Company (LLC) is a hybrid business entity, designed to combine the advantages of a corporation with the tax advantages of a partnership. Like a corporation, the owners of an LLC are not personally liable for the LLC’s debts and obligations. Like a partnership, an LLC can be treated as a pass-through entity for tax purposes. This may be advantageous for those who cannot meet the IRS requirements for an “S” corporation and desire the tax pass-through treatment.

In summary, an LLC provides:
1. the pass-through tax treatment of a partnership
2. the liability protection afforded by a corporation (and not available with a partnership)
3. the freedom from the restrictive and burdensome qualification and operating requirements that come with an “S” corporation.

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