LIMITED LIABILITY COMPANIES (LLCs)

LIMITED LIABILITY COMPANIES(LLCs)
LLCs did not make any sense til the IRS made a ruling in 1998 stating that LLCs could be taxed as either a partnership or a corporation.
if taxed as a partnership you have the ability to pass through any income or loss to the partners,if taxed as a corporation you have the ability to retain earnings or losses in the corporation.
LLCs can have unlimited members unlike an S corporation.
If a person with interest in an LLC is involved in a lawsuit and loses he can only obtain a charging order.Most attorneys will not have there clients accept the charging order becouse of the tax implication.