Limited liability company is a one kind of business where many investor invest their money.And it is a large business.May be their are thousand of shareholder of this business.It can be operated business domestically or internally.It has many many investor or shareholder.
Actually shareholders provide money. Annually company issue share and shareholders collect this shares and business increase their money. on the other word sharemarket is a one kind of money market. Shareholder provides money but they do not operate the business. So they collect director and director run the whole business.All the decision make director.And company run continually to his like
Like owners of partnerships or sole trader they provide their personal income tax.But the LLC itself is not a separate taxable entity. Like owners of a organization, however, all LLC owners are protected from their personal liability for business debts and claims -- it is known as "limited liability." For this reasons, many people say that the LLC combines the best features of the partnership and corporate business structures in the world.
Because of these dual benefits, of the shareholders, or “Members” as they are known if part of an "limited liability.Actually it has certain tax advantages, including, but not limited to, pass-through taxation and partnership treatment by the IRS. These advantages make limited liability very desirable for certain business ventures.
Advantages of the LLC form of business organization:
⦁ Tax advantage
⦁ limited liability
⦁ more people
⦁ much money
⦁ better job for worker
⦁ big market place
⦁ issue share anytime
⦁ fringe benefit
An limited liability company allows their members, to like shareholders in a corporation, to enjoy limited liability. The LLC is a separate legal entity. Its assets are considered separate and apart from Member’s assets.Because save for the amount invested by the member in the LLC.
Some of the minor disadvantages of an LLC might be:
⦁ It is very hard.
⦁ It is very risky business
⦁ Tax rate is high
⦁ It is very costly
⦁ It is bouring job
A organisation structure whereby the shareholder of the company cannot be held personally liable for the company's all debts or liabilities.LLC differ slightly from one country to country. However, it is very essentially a hybrid entity that is combination of the characteristics corporation and a partnership or sole tradership.
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