LLC Formation Attorney In North Carolina
The main benefits of setting up a limited liability company (LLC) are the flexibility it offers in tax deductions and the liability protection it provides. Because LLCs are relatively inexpensive, fast and easy to set up in North Carolina, they are a great option for startups, small and medium-sized businesses.
I’m attorney Bob Morton, and at North Raleigh Law, I provide guidance and counsel to business owners and entrepreneurs on forming an LLC. Below are some of the key benefits of choosing this type of business entity.
North Carolina tax law provides a number of tax benefits to LLCs, including a low corporate income tax rate and a number of tax credits based on the type of business. An LLC is also the only type of corporation that is exempted from double taxation, giving the owners the option of being taxed as either a pass-through entity or as a corporation.
Personal Liability Protection
An LLC is considered an entity independent of the LLC owner(s). This means that unlike a sole proprietorship, the personal assets of LLC owners are not affected by actions taken against the LLC. If an LLC is sued or pursued by creditors, it is only the assets of the LLC that are affected and not the assets of the owners of the LLC.
LLC Or S Corporation Election?
The main issue most people look at when deciding between an LLC and an S corporation is how regulations affect taxes for owners. LLC owners are required to pay self-employment taxes on all net profits. The owner of an S corporation has the option of drawing a salary and any additional earnings are considered unearned income that is not subject to self-employment tax. However, the management structure regulations for an S corporation are much stricter than those for an LLC. The right choice is often based on how important simplicity and flexibility are to the owners.
LLC Can Be Taxed As An S Corporation
It is now possible to have an LLC as your entity, but have that entity taxed as an S corporation. The LLC owners can essentially choose to be taxed as a partnership or an S corporation
If you need legal help and advice and would like the advantage of having a go-to Raleigh LLC Formation lawyer who is highly accessible and easily approachable while offering reasonable fees, please call 919-944-4856 or contact my firm online for an initial consultation. North Raleigh Law is located in Raleigh and serves clients throughout the Triangle Area in Wake County, Durham County, Orange County, Chatham County, Vance County and Franklin County, including Raleigh, Durham, Chapel Hill, Zebulon, Wake Forest, Fuquay, Cary, Clayton, Henderson, Oxford, Pittsboro, Apex and Holly Springs.