The Different Types of LLC You Should Know About

Are you looking to start a business but want to ensure that you and your family are protected? Then, an LLC is the best option for you. It stands for Limited Liability Company, and it’s a hybrid business structure, which means the liability is limited and separated from the owner. An LLC is mainly used to separate personal or individual assets from the company or business. In other words, it protects you and your family in case bankruptcies or other unfortunate events happen. You can use an LLC for doing active business or holding stocks.

There are different types of LLC, and we can discuss some of the main ones here. It will open your mind to new ideas, and you can get yourself educated about this kind of business structure. It might even come in handy in the future, and is one of those that can help you form an LLC! So read on below to know what these types of LLCs are.

Single-Member LLC

Single-member LLC means that the business has only one owner, and it’s one of the most popular filing types that’s also very affordable. It also requires less paperwork, so many people choose to form a single-member LLC. The owner is responsible for debt the business owes, taxes, and other company transactions.

General Partnership

If an LLC is formed with multiple owners, then a General Partnership LLC is formed. It simply means that all members are responsible for the business’s taxes, company transactions, and debt. The members can also decide when an asset can be sold, and they can pay the tax using his or her business income share. Overall, General Partnership LLC is perfect for small to medium-sized businesses.

Family Limited Partnerships

The Family Limited Partnerships is largely similar to Limited Partnerships. The only difference is that a family owns it. So many families start forming a Family Limited Partnerships LLC to put their properties into the company. They can also designate different roles and give other members of the family control of their property.

Series LLC

These are business entities that designate debts, obligations, and rights to smaller cells. These cells are also called series, including the members, managers, assets, and interests.

L3C Company LLC

L3C companies are for-profit organizations for philanthropic purposes. These kinds of companies offer the same tax benefits as a limited liability company, but at the same time, also providing the same prestige as a not-for-profit organization. The marketing strategies of these companies are commonly associated with a social enterprise.

Member-Managed LLC or Manager-Managed LLC

When you first form an LLC, you need to decide on the desired structure of the operating agreement. It’s during this time when you must choose between a member-managed LLC or a manager-managed LLC. The owners of the company run the member-managed LLC, and each owner has the authority to act on behalf of the business. On the other hand, manager-managed LLCs are for the passive members of the LLC, such as the investors. As a result, Manager-managed LLCs are uncommon, while member-managed LLCs are often used in many companies.

So if you want to form an LLC today, you should look for help from LLC Guys. They have the knowledge to help you form the right LLCs that’s available in your state today.

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