LLC offers protection of personal assets from company debts or debts. The Limited Liability Company a popular option for foreign investors expanding in the country.
- It requires submitting documents to the Secretary of State to be formalized.
- You can have one or more partners called members.
- It can be managed by one or more Managers, or by one or more Members.
- All members have limited liability.
Exclusions
However, LLC members are not excluded from all liability if they engage in various illegal activities. They are held liable if it is discovered that they have used the company to commit fraud or have personally guaranteed debt. They are also liable if they negligently appoint or supervise a manager, employee, or other members who cause harm or harm a third party. In addition, due to the protection provided to members, certain companies, such as insurance companies and banking agencies, are not eligible to be incorporated as limited liability companies.
Profits and losses flow to the partners in the proportion that they have agreed, according to their capital accounts, or failing that, according to local law, which generally indicates that it is according to their contributions.
If the LLC chooses the tax treatment of Sub-Chapter S of the act, then the members will be able to divide the income of the LLC into between income from wages and income from profit or loss sharing and thereby obtain significant savings in terms of payments corresponding to social security and retirement. However, this choice or treatment is not available to LLCs with foreign members.
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