วันพุธที่ 4 มีนาคม พ.ศ. 2552

Form a Virginia LLC for Your Business

By Christine Snook

The Virginia limited liability corporation designation was created expressly for the small business owner. It has the same benefits that a corporation does, but does not have the same drawbacks.

Corporations and limited liability companies both offer the identical amount of protection from liability. Both are vehicles designed to shield your business and deliver a protective layer between your personal assets and those of your small business. In today's litigious society, this protection is a necessity.

VIRGINIA LLC IS A SIMPLER LEGAL ENTITY

Virginia corporations require several legal formalities under statutes. Fortunately, a Virginia LLC does not. It is less complicated to form and a great deal easier to maintain.

VIRGINIA LLC IS MORE FLEXIBLE

When you have a Virginia corporation you are required to follow a set of statutory structures and processes as well as some maintenance requirements like having a Board of Directors.

Conversely, the LLC allows owners to structure their businesses the way they would like.

VIRGINIA LLC HAS MORE TAX CHOICES

LLCs are popular in Virginia because of changes to IRS laws in 1997. At that time, the IRS set up "Check the Box Regulations" that let owners of Virginia LLCs decide how to file taxes; whether at a single-level taxation, as an S corporation or as a C corporation.

Because of these changes, you can now secure the tax benefits of a corporation for your business without giving up the benefits of state law or the ease of a limited liability company.

ANNUAL FEES FOR A VIRGINIA LLC ARE SMALLER

Virginia charges a small annual fee to maintain the registration of a Va limited liability company. This fee is currently $50. This fee is a set fee regardless of the number of members of the # of shares issued.

In contrast, the minimum annual fee for a corporation is $100 annually and it can be more. As a corporation equity structure gets more complex or more shares of stock are issued, the fee increases significantly and can be as much as $1700 a year.

SUMMARY

When you form a Virginia LLC , you get a versatile protection vehicle for your business. While a corporation may be more suitable for larger and complex businesses, the Virginia limited liability company is more suitable for the typical small business.

About the Author:

ไม่มีความคิดเห็น:

Subscribe in a reader!