LLC Newark

LLC Newark

Newark allows business owners to form their own LLC by filing articles of organization. The information required for the articles of organization is not difficult. It typically includes the name of your Limited Liability Company, (LLC) the location of its principal office, the names and addresses of the limited liability company's owners and the name and address of the LLC's registered agent. Experts say the LLC combines the best features of both the partnership and corporate business structures. Newark, Limited Liability Company is a business structure that fits somewhere between the partnership or sole proprietorship and the corporation. Like owners of partnerships or sole proprietorships, LLC owners report business profits or losses on their personal income tax returns. The Newark LLC itself is not a separate taxable entity. Like a corporation, all LLC owners are protected from personal liability for business debts and claims -- a feature known as "limited liability." This means that if the business owes money or faces a lawsuit; only the assets of the business itself are at risk. Creditors normally can not reach the personal assets of the LLC owners.

Newark LLC Planning


An LLC can replace a family limited partnership as an estate planning tool. An operating agreement can include features that let you make gifts of equity while maintaining control of the LLC. You can also reduce the value of the gift. When you give a minority, non-voting stake in the company it isn't valued at face value, but can be discounted by as much as 35 percent. LLC members aren't personally liable for the company's debts. An LLC's tax advantages, combined with filling and insulation from liability and estate-planning benefits, can make it a suitable and cost-effective alternative to other business entities. However, this is not blanket protection. One way to get IRS discounts is to set the company up so that senior members retain control but give minority interests over time at greatly reduced rates. The beneficiaries don't gain control until very late in the process. The corporate veil may be pierced if there is malpractice. Members may still be liable for debts if they personally guarantee them. And they're liable if they don't deposit taxes withheld from employees' wages or use the company to conduct personal business. Besides that, members are liable only up to the amount of their capital contributions and the amount they agree to contribute to the firm's capital.


An LLC can help avoid double taxation if you sell the company or some of its assets. A properly organized LLC combines some of the aspects of partnerships and corporations into one entity. For example, partnerships and sole proprietorships generally have no insulation from liability. But a member of an LLC has limited liability and no personal responsibility for the debts or liabilities of the entity or the other members. LLCs can work well for family businesses that have exposure to liabilities, real estate enterprises, and service companies. Let us take a example, if a LLC in Newark company spends $20,000 to buy a warehouse and later sells it for $120,000, making a net profit of $100,000. LLC Newark liable for a combined federal and state tax bites of as much as 40 percent, extra your benefit to $60,000. Now you can take the gain as salary or a dividend distribution. If you take the money as a dividend, your company loses a deduction and you pay personal taxes on the cash. In the highest bracket, that's 45 percent. Add the $27,000 tax bill to the total and you and the company have paid $67,000 in combined taxes. If you take the money as salary, your company keeps its deduction, but now payroll taxes kick in. As a Newark LLC: The IRS taxes you only on your personal return and at low capital gains rates. So your tax liability is likely to be $25,000. So, Taxation hit only one time.

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