08/19/2021
🔺We are not an attorney and/or a legal professional tax expert, We are just giving you a general information🚫
What is an LLC
LLC stands for "Limited Liability Company". It's formed at the state level. LLCs are popular because they combine some of the positive aspects of corporations and partnerships while eliminating some drawbacks of each.
Types of LLCs
There are several different categories within LLCs:
✔️ Single Member LLC: A Single Member LLC has one owner. The IRS treats SLLC like Sole Proprietorship for tax purpose. The Single Member LLC doesn't have to file separate taxes.
✔️Multi-Member LLC: A Multi-Member LLC has more than one owner.
✔️Member-Managed LLC: Member Managed LLC means that the owner (or owners) run the business.
✔️Manager-Managed LLC: Manager(s) (not owners) named in the LLC operating agreement run the LLC.
✔️Professional LLC: Some States don't allow certain professions to form an LLC. Doctors, Lawyers, CPAs, Chiropractors, and similar businesses may be required to form a PLLC (Professional LLC). Only licensed professionals can be listed as member of a PLLC.
✔️ Domestic LLC vs. Foreign LLC: Domestic LLC refers to the State where the LLC is formed. For example, if an LLC is registered in Iowa and does business in Iowa, it's domestic LLC.
Foreign LLC is a classification used for companies that do business in States other than the home State where the LLC was formed.