LLCs
Pass-through tax structures
LLCs is the plural of LLC, which stands for limited liability company—a business structure that shields owners from personal responsibility for company debts.
The format combines features of corporations and partnerships: She formed an LLC for her consulting business.
LLCs have become the default structure for small businesses in the United States.
People in an organization
- unitsStandard measures of quantity
- equity stakeOwnership portion in enterprise
- voting rightsEntitlement to elect officials
- assigneeRecipient of transferred rights
Transferred without retention
- Schedule CSole proprietor income form
- K-1Kindergarten through first grade
- deductionsConclusions from reasoning
- business expensesCosts of commercial operations
Entity's official legal contact
- incorporationForming a legal entity
- filingStoring documents systematically
- bylawsOrganization's internal regulations
- EINFederal business identifier
Capped financial responsibility for owners
- asset protectionSecuring owned resources legally
- personal liabilityOne's own legal responsibility
- piercing the veilExposing concealed reality
- indemnificationCompensation for loss suffered
Formally registering a choice
- quorumMinimum for valid proceedings
- resolutionsFormal decisions or pledges
- meetingsOrganized group assemblies
- amendmentsFormal changes to documents
distributions · dissolution · annual report · records · compliance · good standing · reinstatement · winding up
Business owning other businesses
- subsidiaryOf lesser importance
- parent companyFirm owning subsidiary businesses
members
People in an organization
- unitsStandard measures of quantity
- equity stakeOwnership portion in enterprise
- voting rightsEntitlement to elect officials
assignee · transferability · admission · withdrawal · dissociation
pass-through
Transferred without retention
- Schedule CSole proprietor income form
- K-1Kindergarten through first grade
- deductionsConclusions from reasoning
registered agent
Entity's official legal contact
- incorporationForming a legal entity
- filingStoring documents systematically
- bylawsOrganization's internal regulations
limited liability
Capped financial responsibility for owners
- asset protectionSecuring owned resources legally
- personal liabilityOne's own legal responsibility
- piercing the veilExposing concealed reality
indemnification · fiduciary duty · duty of care · negligence · separation
voting
Formally registering a choice
- quorumMinimum for valid proceedings
- resolutionsFormal decisions or pledges
- meetingsOrganized group assemblies
amendments · distributions · dissolution · annual report · records · compliance · good standing · reinstatement · winding up
holding company
Business owning other businesses
- subsidiaryOf lesser importance
- parent companyFirm owning subsidiary businesses
- tax strategiestax shelters, tax deferral, tax planning, tax avoidance, tax breaks
- financial secrecybank secrecy, numbered accounts, Swiss banking, Swiss banks, offshore accounts
- loopholesescape clauses, exemptions, gray areas, technicalities, workarounds
- corporationsApple, Microsoft, Google, Amazon, Toyota
- business groupstrade associations, trade association, chamber of commerce, industry groups, business alliance
- commercial lawcommercial law, trade law, commercial transactions, business contracts, trade regulations
Businesses with single owners
public companies · personal liability · corporations · nonprofit organizations · multinational corporations
Businesses with single owners