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Limited Liability Companies (LLC's)
Limited Liability Companies (LLC'S)
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"Attorney Chris Hansen practices preventative law and can show you how to protect your valuable assets.  Please see Our Philosophy for more details."
Areas of Practice
Business
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Law Offices of Chris Hansen, APC
7840 El Cajon Blvd, La Mesa, CA 91942
619-469-2667 or chris@inclaw.com
7840 El Cajon Blvd, La Mesa, CA 91942
La Mesa probate attorney, La Mesa corporate attorney, La Mesa business attorney, La Mesa trust attorney.
A limited liability company is a business organization that is treated like partnership for income tax purposes and as a corporation for liability purposes. An LLC is a legal entity that allows one or more owners to carry on a business with none of the owners having personal liability for the obligations of the business.

Not only does an LLC probide limited liability for its owners (as in a corporation), it also provide freedom to structure management rights and financial interests in the entity in almost any configuration the parties wish (as in a partnership).

Most often, an LLC will elect to be treated as a partnership for income tax purposes, in which case the income, gains, losses, deductions, and credits of the LLC generally will flow through to its members for reporting on their personal tax returns.

Every start-up business should consider the LLC form of organization, whether it is a corner grocery store, real estate venture, or corporate high-tech joint venture.

Existing unincorporated businesses and existing business that is a partnership and any sole proprietor bringing in a partner should consider converting to LLC form.  See Conversion

An LLC is great for real estate investments because limited liability and flexible management with the ability to pass through losses and deductions, make special allocations, and avoid double taxation on the sale of appreciated assets, make LLCs particularly attractive for real estate investments.

An LLC is also great for Joint ventures as opposed to a general partnership or corporation as a means of organizing a joint venture or "strategic alliance." LLCs are preferable to general partnerships because of the limited liability they provide to members (thus eliminating the need for a venturer to form a special-purpose corporation) and are preferable to corporations because of pass-through tax treatment and the avoidance of double taxation.