The Utah Limited Liability Company
For the vast majority of small businesses, especially first time business owners, the relative simplicity and flexibility of the LLC makes it the better choice. This is especially true for e-commerce businesses that need the benefits of limited liability and the legitimacy of official organization, but do not need or want the formalities that come with corporations. Further, LLCs are good entities to hold property, such as real estate, that may increase in value. C-corporations and their shareholders are subject to a double tax (both the corporation and the shareholders are taxed) on the increased value of the property when the property is sold or the corporation is liquidated. By contrast, LLC owners (called members) avoid this double taxation because the business’s tax liabilities are passed through to them; the LLC itself does not pay a tax on its income. This double taxation consideration applies to more than real estate. The pass through of taxation to the LLC owners is a significant advantage over the C-corporation.
The tax information on this site should be reveiwed by your own Accountant or Tax Attorney. The information above is intended to be informational only , and depending on your State or Country of location. May or may not apply.