An Ohio Limited Liability Company (LLC) may be formed to sell goods or services. An LLC is a separate legal entity; this type of entity is sometimes mistakenly called a limited liability corporation.
Unlike a corporation, the ownership units of an Ohio LLC are called a Membership Interests instead of shares. Each owner of the Company is known as a Member.
There are many benefits to having an Ohio LLC rather than a corporation. We offer an initial consultation to assist in evaluating the pros and cons of an Ohio LLC and Corporation.
The following is a brief summary of some of the tax benefits:
- The entity only has one level of taxation; whereas a corporation (specifically a C-corp) has two levels of taxation.
- A Limited Liability Company allows the owners to distribute profits (or allocate loss) in any manner they choose regardless of capital contributions.
- Losses from the business can be passed through to a member’s individual tax return.
- An LLC can elect to be taxed as a corporation (but a corporation cannot elect to be taxed in the same manner as an LLC).
On a quarterly or semi-annual basis, business owners should address your tax planning goals and questions with your accountant (CPA). This will allow you to adjust your tax structure as the business grows.
Schedule a free consultation.
Just a conversation - no cost.
Share this Post