Limited Liability Company – Combines the operational flexibility and favorable tax treatment of partnerships with the limited liability feature of a corporation.
LLC Facts to Know
Tax flexibility – By default, an LLC is treated as a “pass-through” entity for tax purposes, much like a sole proprietorship or partnership. This means that LLCs avoid double taxation. However, an LLC can also elect to be treated like a corporation for tax purposes, whether as a C corporation or an S corporation.
Ability to place membership interests in a living trust – Members of an LLC are free to place their membership interests in a living trust.
Contributions – members contribute in the form of cash, property, services, or promises to contribute cash or property or to perform services.
Property contributions. Contributing property to set up an LLC is not taxable, even for minority interest owners.
Ability to deduct losses. Members who are active participants in the LLC’s business can deduct its operating losses against the member’s regular income to the extent permitted by law.
Limited liability – a creditor may not seek satisfaction of any limited liability company debt against the personal assets of any member.
Tax advantage – the members each pay their share of tax on their share of profits avoiding double taxation of LLC profits.
Number (unlimited) and type of investors (can be individuals, LLCs, Corporations, Trusts, Partnerships) and there are no restrictions as to ownership unlike an S corp.
Non-transferable interest – a member may not transfer his voting interest without concurrence of all remaining members.
Ease of transferability – A limited liability company and all of its assets and accounts may be transferred by the simple assignment of an interest (stake) in the company.
Management – The management of the business and affairs of an LLC may be conducted by the members or, if the members agree, may be vested in a manager or managers.
Continuity of life – the term of existence must be stated in the Articles of Organization. In most States perpetual duration is accepted.
Can convert to a Series LLC (instead of using multiple LLCs) to segregate assets and liabilities.
Your state may impose income taxes on LLCs even though the IRS doesn’t.
Converting an S or C Corporation to an LLC may carry too heavy a tax price.
Unfavorable state tax rules and fees. In some states, an LLC must pay higher taxes and fees than would a corporation that generated the same revenues.
What is a Series LLC?
A Series LLC is a special form of a Limited liability company that provides liability protection across multiple “series” each of which is theoretically protected from liabilities arising from the other series.
Thank you for your informative, engaging, and very valuable presentation at the ANN Reno Conference for Nonprofits. "The Keys to Successful Nonprofit organization will be critical to the success of our fledgling nonprofit.
Your presentation style is extremely effective and furthered networking among those attending the conference, Thank You!
I appreciate your generosity in sharing your time and expertise with us at the conference.
For six years we have listened, learned and implemented all of your strategies and advice. I can’t even begin to tell you how fantastic it is to actually see the results we have produced and are getting closer and closer to our financial freedom day.
Forrest & Anna Cummings, Silver Springs NV
I can honestly say that when you speak you have such an amazing ability to make everyone in the room feel comfortable. You are open, honest, funny and brilliant! It is a delight to learn from you and I always walk away with a new ah ha!
Doug Hixson, Reno NV
My wife and I took the class on the Language of Money last Saturday and heard you speak. To be honest with you, both my wife and I wished that you had done the entire class! We found the info you had presented both interesting and hopeful that there is something we can do to protect our business and our money from getting consumed by the IRS.
Steve & Christine Sanders, Sacramento CA
I wish that I could move the clock back 10 years so that I could work as an intern under Cheri S. Hill.
Zenzo Tazawa - Santa Rosa CA
I read Incorporate and Grow Rich in 2005 and took advantage of Sage International’s services to create www.transguardian.com, an online logistic and insurance management corporation. We went from bootstraps capitol in a spare room to a downtown office with revenue of seven figures in three years. We have always had complex needs, and Sage has always had intelligent, innovative and highly practical answers. Now with double digit growth in spite of an adverse economy, our questions are even more complex and sophisticated, and Sage continues to offer solutions that are flexible, workable and creative as we are. We’ve sent perhaps a dozen clients to Sage over the last few years, and, without exception, everyone of them has thanked us profusely for the recommendation.
I cannot tell you how much I enjoyed listening to your and Pragito's insights and advice. It really spoke to my heart, and gave me some awesome tools to use to overcome my fears and negative thoughts about my ability to make this new business work, and fulfill my dream of having a more flexible schedule to spend more time with my family. I have signed up for her newsletter.
Northern Nevada Metro Woman
Cheri, I can’t express enough how much I appreciate your time, energy, and knowledge. Your support of ProNet Reno is nothing less than phenomenal.
Dear Cheri, I wanted to thank you for speaking at the Sparks Power Players. I have to say that most of the meetings I have gone to for other organizations are usually very boring and do not pertain to me, but today was great! I got so much out of the material that you presented to us. I want to thank you for your passion and heart for helping companies not only survive, but thrive. I am very excited to apply what I learned today to our business and see the results. Again thank you for your time.
I loved your article in the Northern Nevada Business Weekly about "Sparking Creativity". You make some really great points about the importance of investing in your creative core.
For years I have followed the Artists Way and all the books by Julia Cameron, you must be familiar with her work. As an Interior Designer, I love that I am rewarded for my creative ideas and designs.
Your article made me smile, gave me some great ideas about how to live a creative life and I wanted to thank you.
I received my minute book and had Danielle give me a walk through. I gave her 5 stars afterwards and One Bravo!
Cheri, I give out Few Roses, however in your case you get a Dozen ! I am really looking forward to working along with you in the very near future . Thank you from the bottom of my Dinosaur Heart.