NV LLC
When you form a NV LLC or corporation, you are taking an important step towards your success. These businesses offer benefits that aren't available to sole proprietors, partnerships or dba's. You can learn how to legitimately protect your family's assets, increase your profits and lower your exposure to lawsuits through the power of privacy. Corporate Nevada can help you form a NV LLC and take that important first step.
An NV LLC is a hybrid between a corporation and a limited partnership that offers a combination of the best of both. LLCs provide the liability protection of a corporation with the pass-through taxation of a partnership with the flow of taxable income from an S corporation and LLC to the individual owner. Income or losses are declared on the individual's tax returns instead of tax being levied on the income of the entity. An NV LLC is a very popular choice for many businesses due to its flexibility in management and the personal liability protection offered to its managers and members.
With a NV LLC, you won't have the restrictions on membership that an S-Corporation has on its shareholders. They also allow members to participate in the management of the LLC without losing their liability protection unlike the general partner of a limited partnership which has unlimited liability. They offer the greatest flexibility in regard to tax classification with the IRS and to the distribution of profits and losses. Unlike the S Corporation, distribution is not necessarily based on percentage of ownership.
The members of a NV LLC have "charging order" which is a judgment creditor's remedy, as opposed to a writ of seizure, against a debtor's ownership or beneficial interest of an LLC, LP or stock in a Nevada Corporation. It is considered a lien or garnishment against debtor partner's economic right of distribution. This provides them with protection against their membership interest from personal lawsuits. Many attorneys and CPAs consider the NV LLC to be the business form of choice for those business owners desiring protection from individual liability for company debts, negligence, and breaches of contract with personal liability limited to the contribution and any personally guaranteed loans as well as charging order protection and flow through taxation, unless the business is taxed as a corporation.
Also, the IRS is now allowing an LLC election to be taxed as a Subchapter S, making your NV LLC very flexible since it can be taxed as disregarded entities, partnerships, corporations and sub chapter S while maintaining limited liability, charging order protection and privacy. An LLC will protect all members from individual liability for company debts and misdeeds, much like the corporation while it also allows a creditor of the corporation to attach corporate stock and gain control of the corporation. However, the creditor of an LLC cannot become a member and control the company but can only receive an income of interest in the company. To learn more about the advantages you will gain by forming a NV LLC, visit www.corporatenevada.com.
Entrepreneur's Creed
I do not choose to be a common person.
It is my right to be uncommon.
I seek opportunity -- not security.
I do not wish to be a kept citizen, humbled and dulled by having the state look after me.
I want to take the calculated risk, to dream and to build, to fail and to succeed.
I refuse to barter incentive for a dole;
I prefer the challenges of life to the guaranteed existence: the thrill of fulfillment to the stale calm of Utopia.
I will not trade my freedom for beneficence nor my dignity for a handout.
I will never cower before any earthly master nor bend to any threat.
It is my heritage to stand erect, proud and unafraid: to think and act for myself,
to enjoy the benefit of my creations and to face the world boldly and say:
This I have done. For I am an entrepreneur.
Author unknown
Are You A Commingler?
If you are…there’s only one cure, separation! Always separate your safe assets like cash, intellectual property and stock portfolios, from dangerous assets like autos, heavy equipment, rental real estate, etc. For example, it is better to place expensive equipment critical to operations in an LLC and lease it back to the operating company. If the operating company is sued, the income producing equipment is not at risk of being seized in a judgment. Isolating dangerous assets, such as rental property, from one another is also a wise strategy.
