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An LLC is a legal form of business that has characteristics of both corporations and a partnership. This form of business offers limited liability protection to its owners. In other words the owners of the business cannot be held fully responsible for any debts that the business occurs or actions taken on its behalf. This type of business form is best suited for small businesses with that have a small number of owners and preferably just one.

So what are some of the basic characteristics of a Limited Liability Company? Well for starters the owners of an LLC are not partners or shareholders like they are in other forms of business they are members and every LLC has to have at least one member. Members of an LLC cannot be held personally liable for the debts of the company. This is the same as for a corporation. Just don’t make the mistake of signing any documents where you provide your personal guarantee that the company will pay a bill or honor an agreement. If the company for some reason does not pay that bill or live up to an agreement then you can be held liable.

So just like a corporation you as an owner can use an LLC as a form of protection for your personal assets. And depending on the type of business you want to form this can be extremely important if something were to happen. Because being an LLC also provides you with legal protection in case the company was to be sued for some reason. Sometimes being protected from your business is the most important thing of all.

Now how is a Limited Liability Company like a partnership? Plain and simple it’s all in the taxes. LLC’s are not subject to the double taxation rule imposed on corporations. To explain this rule is easy. If your business is a corporation and you make a profit for the year that profit must be taxed. After the profits are taxed then you as the owner may take the profits and issue them to yourself as the owner and any other people that own a percentage of the business. This of course is your dividend. Well the IRS views the dividend as personal income and it is again taxed as part or your personal taxes. In an LLC the profits are not taxed. They are distributed to the members based on whatever percentages have been previously worked out. Then they are only taxed as personal income when that person files their taxes for the year.

Also if the business loses money for the year all members of the LLC can deduct the equivalent loss percentage from their income. You’ll of course need supporting documents to prove the loss to the IRS. And if the members do want to leave their profits in the company for business purposes then the Limited Liability Company can file a tax return of its own.

What most people gain that form a Limited Liability Company is flexibility. You can structure the management however the members see fit. You have the protection of a corporation for your personal assets. And you can elect to either leave your profits in the company, have them taxed or the profits can be distributed and the members can pay the taxes themselves. But you avoid the double taxation penalty that corporations can incur.

Cash Miller is an experienced entrepreneur and speaker who has spent over a decade as a small business owner. His years of experience in small business cover many topics. For more small business information you can go to http://www.SmallBusinessDelivered.com

When creating an LLC as a single member LLC, the business owners gains 4 significant advantages over a sole proprietor business structure. With the costs of starting and maintaining a limited liability company being so minimal, most lawyers and CPAs would advise on the use of the single member LLC. . . it is a protection vehicle and does not create any added complexity when it comes to operations and taxes.

PROTECTION FOR THE MEMBER OF THE SINGLE MEMBER LLC

A limited liability company provides a legally enforceable shield protecting you personally from the obligations and liabilities of your business. If anyone ever wanted to file a lawsuit against your business, then you would not be personally liable just because you are the owner. If you run your business as a sole proprietorship, you are inextricably part of the business and so you become the target of anyone who has a claim or wants to make trouble for your business. You cannot avoid this personal liability in a sole proprietorship. You need a single member LLC.

Do not think that given the nature of your business, a lawsuit is unlikely. Business lawsuits are now an epidemic in America. The more your business interacts with others, the more likely there could be a claim.

So, any third party, whether it be a customer, a service provider, contractor, employee or anyone who just visits your business is a potential threat..
Now, you can start to think through the chances of who can sue you but instead, try to understand what lawsuits are all about. They are about money. If your business becomes successful, your chances of lawsuits are higher because you will be getting and keeping more assets.

Instead of justifying or hoping you never get sued as a sole proprietor, it is better to ask whether paying the few hundred dollars to create and maintain an LLC each year is worth having this protection. Check with your specific state to see what specific fees apply when it comes creating an LLC and maintaining it on file each year.

NO ADDED COMPLEXITY WHEN IT COMES TO OPERATIONS OR TAXES

From an operational perspective, a single member LLC can operate his or her business in almost the same way as a sole proprietorship with a few exceptions.
When creating an LLC, the entity should have a simple operating agreement in place but otherwise, there are no legally required formalities like meetings and written approvals as there are with corporations. Maintenance is minimal.

When conducting business, it is very important to make clear to all parties that it is the LLC that is the business. This usually means including your LLC business name in all your written material (marketing material, advertisements, contracts).

For a single member LLC, there is no difference in how the business reports and pays federal income taxes . A single member LLC is disregarded by the IRS for tax purposes only and so you pay taxes using the exact method of rules for sole proprietorships. By operating a single member LLC, you get all the advantages of the limited liability company as a business vehicle without any added difficulties when it comes to income taxes.

PROFESSIONAL AND TRUSTWORTHY IMAGE

Customers today are skeptical when it comes to choosing who to do business with. One method in which they distinguish a legitimate businesses from others is when they see that a business is being run through a formal legal entity such as an LLC.

Let us face it. Most of the business scams and fly by night businesses out there are sole proprietors. Their goals are to take money from unsuspecting victims. Many will not go through the process of setting up a formal legal entity for their scheming plans. It is so simple to put forth a business name to the public and allege that you are running a business. This is all that is required for a proprietor to start.

Many customers recognize a business that has taken the steps involved with creating an LLC likely has intelligent and serious owners behind it. A single member LLC business generally portrays more trust and professionalism over a sole proprietor running the same business.

Of course, there are many legitimate and respectable sole proprietor businesses out there but for the potential customer it is difficult to ascertain which ones are for real and are trustworthy. It helps a lot when customers see an LLC designation after a business name. Creating an LLC can makes it easier to launch your business and get those customers.

For more FAQ information about the LLC v. Sole Proprietorship, visit the LLC Learning Center at http://www.TheLLCExpert.com

What makes young entrepreneurs different from the rest is that they found out what naturally suit them early on. They have realized that they have the potential and not to be under any superior who will give them orders.

Today, the number of young entrepreneurs is growing. There are those who planned their course ahead of time and went on being one after all factors have been considered. There are also others who have worked for another person but realized later on that they want something they can call their own.

It can be noted that young entrepreneurs share the same ideals and characteristics. Even if they are of different nationalities and are handling different kinds of business, they have more or less the same aspects that made them successful in their careers.

What are some of the characteristics that make young entrepreneurs what they are?

1. Bigger aspirations.

It is said that every success starts with big aspirations or dreams. Young entrepreneurs dare to dream big. This is the inspiration that push them to do everything they can so that they will achieve their goals.

If you want to be a successful entrepreneur, start having big aspirations. From there, you can start planning out strategies on how to get there. Nobody is saying that the going will be easy. There are challenges along the way. Focus on your dream and motivate yourself to get past the obstacles.

In the world where everyone seem to have more or less the same dreams, make sure that you will make a change so that you will rise above the rest.

2. Love for the job.

For your dream to become a reality, you have to always believe it will soon be. To do this, you need to be passionate about what you do. You have to feel better from the start up until the end of the day.

Do not get stuck in a profession that does not interest you. Find the one that you love doing so that you are not forced to wake up in the morning just because you are obliged to.

Young entrepreneurs have found their passion early in life. After that, all the things they do complement what their passion is.

3. Thirst for new knowledge.

The most successful people are not always the ones that finish their education and have degrees. Studies have shown that most of those who are successful in their careers are just average persons. Some are not even of extraordinary intelligence.

Their secret?

These people are willing to learn. They have in them a hunger for more knowledge and to acquire enough understanding for what they do. They dared ask the necessary questions and took time to look for answers to them.

If you want to succeed, embrace new knowledge about things that are relevant to your goals. There are a lot of ideas out there. Yours might not be as effective as it used to be. Take the time to research about new things. Arm yourself with new information that will become helpful in your journey towards your big dreams.

Know what you want early in life and do everything in your power to achieve them. These are the characteristics that young entrepreneurs have. And these are the things that make them different from the rest.

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When you are new to investing you may have little or no funds with which to invest with. Let’s take a look at several ways to get access to money so you can begin your investment career sooner rather than later.

1. Savings – The old fashioned way like you were told to do as a kid. Remember, all great investors are great savers. If you are not saving money now then you are never going to become wealthy until you start saving. Make sure you pay yourself before you pay anybody else. Simple but powerful words.

2. Sell something – In this modern society we live in where we just have to own the latest of everything. Well the good news about that is that you are bound to have plenty to sell. Put an add in the newspaper or the easiest way, E-Bay. Now the harsh reality, stop spending money on things you don’t need. Wait until you have real wealth then pay cash for them.

3. Tax – Minimize your tax as quickly as possible. The wealthy don’t become so by paying lots of tax. Get yourself a great accountant and get good advice on how to lower your taxable income. There are plenty of ways to do this. Starting a side business is a great idea. Pay your expenses and spend, then pay tax from what is left over. It is much better than being taxed and then spending what is left. This will send you broke, quickly.

4. Income – Tomorrow you are going to see your boss and get that pay rise. However, first you need to get your reasons down on paper why you should get a rise. Write down some good solid reasons why you should get one. If you don’t deserve one then take a long hard look in the mirror. If you can’t do your best working for someone else how are you going to give yourself the best? Be the best that you can regardless of what activity you do and the rewards will come. Ask for 10% extra. If you don’t get it but you know you are worth it, then get another job. Only you will know if you are worth it.

5. OPM (Other peoples money) – The most successful business people in the world today always use OPM, always. Do you think Donald Trump puts up his own money to finance that new tower? No way, he never puts up his own money. Use the banks, or do vendor finance deals. Borrow, beg or (actually, you better not steal) borrow some more. As long as the investment pays more than the interest things will work out. You must do due diligence here. Good debt is the key here and I will do another article on good debt shortly.

6. Using equity – So you own a house or part of a house. Excellent, then you have valuable equity which the banks love and in Australia you can release about 80% of that equity. Should you spend that equity on a holiday like the rest of the herd? No. Put that money to work in property or shares and allow yourself to have the income that it produces.

7. Parents equity – Times are getting tough, that is for sure. Talk to your parents if you can and explain that it a new world for young and smart investors. Go over everything and show the folks exactly how your chosen strategy works and how you both can benefit. Profit share with them if you like. Better yet, teach your parents and give them a better retirement. It is your duty.

8. Superannuation (401K) – Are you satisfied with the institutions taking care of your life savings with various financial planners and fund managers getting massive trailing commissions? Then start to manage your own SMSF (401K) and put it to work harder and smarter. There are some awesome opportunities out there right now and you can find one that resonates with you. Pay for good advice here. I repeat, pay for good advice.

So there you have it. Eight ways in which to get a leg up in your new investment journey. You might not be able to do all eight ways, but I’m sure you can access at least four of them.

Clint Maher is dedicated to the success of others by helping people achieve their wealth creation goals. You can download your free E-book or order your free DVD at http://www.completewealtheducation.com