Host: Sidney Wheelan

Episode Summary:

This episode explores Limited Liability Companies (LLCs) as a business structure, highlighting the advantages they offer compared to other options like sole proprietorships. Key takeaways include:

• Limited Liability Protection: Protects owners' personal assets from business debts and liabilities.
• Operating Agreement: Essential legal document outlining ownership, management, and operational procedures. Seek legal counsel for creating this document.
• Management Flexibility: Choose member-managed or manager-managed structures.
• Pass-Through Taxation: Profits and losses pass through to owners' personal tax returns, avoiding double taxation.
• Simplicity in Operation: Less complex formalities compared to corporations.
• Flexible Ownership Structure: Can have various member types, including individuals, other businesses, and trusts.
• Versatile Profit Distribution: Profits can be distributed beyond just ownership percentages.
• Increased Credibility: Projects a more formal and established image.
• Ease of Formation: Generally, a straightforward process.
• Perpetual Existence: Business can continue despite ownership changes.
• Transferability of Interests: Allows members to transfer ownership.

Important New Law:

The Corporate Transparency Act (effective January 1, 2024) requires most LLCs and Corporations to report beneficial ownership information to FinCEN. Filing deadlines apply.

Contact Sidney for further questions - mail@wheelanlaw.com

Additional Notes:

• This episode is a great resource for anyone considering starting a business, especially those interested in LLCs.
• The episode emphasizes the importance of seeking professional guidance for legal and financial matters.

WheelanLaw.com

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