Limited Liability Company (LLC)
Limited liability for owners with pass-through taxation by default.
What is Limited Liability Company (LLC)?
Members are protected from the company's debts, like corporate shareholders, while income passes through to them like a partnership (unless the LLC elects to be taxed as a corporation). The operating agreement governs management and account authority.
Limited Liability Company (LLC): a worked example
A family holds rental property in an LLC so that tenant lawsuits cannot reach personal assets.
More terms in Clients, Strategy & Tax
Sole Proprietorship
A business owned by one person with no legal separation from the owner.
General Partnership
Co-owners share management and unlimited liability; income passes through.
C Corporation
A separate taxpayer - profits taxed at the corporate level, then again as dividends.
S Corporation
A corporation that passes income through to shareholders, avoiding double tax.
Trust & Estate Accounts
Accounts run by a fiduciary - a trustee or an executor - under a governing document.
Foundations & Charities
Tax-exempt organizations investing for a mission, often in perpetuity.
Client Profile & Data Gathering
The financial and nonfinancial facts every recommendation must rest on.
Investment Objectives
Preservation of capital, income, growth, growth and income, speculation.