A limited liability company, also called an LLC, is a hybrid entity, bringing together some of the best features of partnerships and corporations. LLCs were created to provide business owners with the liability protection that corporations enjoy without the double taxation. If the LLC chooses to be taxed as a partnership, the earnings and losses pass through to the owners and are included on their personal tax returns. The LLC offers the liability protection benefits of the corporation without the corporation’s burdensome formalities. This simplicity has made the LLC an instantly popular business form for smaller companies. The owners of an LLC also do not assume liability for the business’ debt, and any losses the LLC incurs can be used as tax deductions against active income.
To learn more or form a Nevada LLC, contact a Nevada Corporate Headquarters representative at 1-800-508-1729.