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Forming an LLC in Georgia Home
The GA LLC has become one of the most popular with small business due to its wide flexibility with structural features of a business to federal tax options. It brings together the advantages of all other business entities and filters out the disadvantages of the latter as far as possible.
LIMITED LIABILITY FEATURE PROTECTS OWNERS
The owners of a GA LLC are personally liable for the obligations and debts of the business. This is a major reason for the growing popularity of this form of business.
Section 14-11-303 of the Georgia LLC Act states that members (who are owners) are not liable for the business obligations, lawsuits and other liabilities of the business. It does except out tax liabilities from operations and there are some conditions and exceptions. This protection is a tremendous advantage that only gets more significant as your business grows because successful businesses often become targets for lawsuits.
FINANCING THE BUSINESS
Forming an LLC in Georgia provides you with more options of raising capital. Generally financial institutions like banks refuse to lend money to a brand new business. Another option is to issue ownership interests in a business in exchange for equity capital.
In a Georgia limited liability company, there is a concept of ownership interests and membership units can be issued in exchange for a percentage ownership in the business.
Having a separate structure as the business entity greatly facilitates the raising of capital and provides a well known structure to do so which in turn reduces the costs to raise money for your business needs.
PROFESSIONAL IMAGE AND TRUSTWORTHY PERCEPTION
With the many fly by night business and business scams out there today, potential customers are suspicious. A new business has quite a challenge to overcome these concerns.
By going through the process to form a GA LLC for your business and having an official entity as your business, you belong to a different niche and it only requires a name to set up a business.
But creating a Georgia company LLC is a clear sign of strategic business planning which in turn reflects a professional outlook and builds trust. This can be a great advantage when trying to get customers and build your brand presence in the marketplace.
FLEXIBLE BUSINESS STRUCTURE
The law imposes fewer formalities on a limited liability company with regards to its organization and tax structures. Accordingly, for the single owner business or one with a few related owners, a Georgia company LLC can be set up and structured fairly quickly and cheaply.
As a business evolves and grows over time, its ownership and operational structure may need to change to account for the growth and possible complexity.
Forming an LLC in Georgia allows each business and their owners to define for themselves, how the ownership will be structure and how the business will operate and run on a day to day basis. In business, there is no one size fits all solution to these matters and the Georgia company LLC thus provides ways to customize such fundamental matters for your particular business situation.
FEDERAL INCOME TAX OPTIONS
The 1997 IRS regulations allow a Georgia LLC to choose and decide on the way it would be taxed. There are no longer any additional requirements to qualify for a single layer of pass through taxation.
When you form a GA LLC, your business will be taxed via a single layer of pass through taxation by default. This type of taxation avoids the potentially significant double taxation effect of corporate taxation.
However, in some circumstances, a corporation tax structure might be more advantageous. In these cases, a Georgia company LLC may file an election with the IRS to be taxed as a C corporation or an S corporation.
If you would like more information on the Georgia LLC (limited liability company), visit Georgia Business Formation-a company that specializes in Georgia LLC formations: http://www.GeorgiaBusinessFormation.com
LIMITED LIABILITY FEATURE PROTECTS OWNERS
The owners of a GA LLC are personally liable for the obligations and debts of the business. This is a major reason for the growing popularity of this form of business.
Section 14-11-303 of the Georgia LLC Act states that members (who are owners) are not liable for the business obligations, lawsuits and other liabilities of the business. It does except out tax liabilities from operations and there are some conditions and exceptions. This protection is a tremendous advantage that only gets more significant as your business grows because successful businesses often become targets for lawsuits.
FINANCING THE BUSINESS
Forming an LLC in Georgia provides you with more options of raising capital. Generally financial institutions like banks refuse to lend money to a brand new business. Another option is to issue ownership interests in a business in exchange for equity capital.
In a Georgia limited liability company, there is a concept of ownership interests and membership units can be issued in exchange for a percentage ownership in the business.
Having a separate structure as the business entity greatly facilitates the raising of capital and provides a well known structure to do so which in turn reduces the costs to raise money for your business needs.
PROFESSIONAL IMAGE AND TRUSTWORTHY PERCEPTION
With the many fly by night business and business scams out there today, potential customers are suspicious. A new business has quite a challenge to overcome these concerns.
By going through the process to form a GA LLC for your business and having an official entity as your business, you belong to a different niche and it only requires a name to set up a business.
But creating a Georgia company LLC is a clear sign of strategic business planning which in turn reflects a professional outlook and builds trust. This can be a great advantage when trying to get customers and build your brand presence in the marketplace.
FLEXIBLE BUSINESS STRUCTURE
The law imposes fewer formalities on a limited liability company with regards to its organization and tax structures. Accordingly, for the single owner business or one with a few related owners, a Georgia company LLC can be set up and structured fairly quickly and cheaply.
As a business evolves and grows over time, its ownership and operational structure may need to change to account for the growth and possible complexity.
Forming an LLC in Georgia allows each business and their owners to define for themselves, how the ownership will be structure and how the business will operate and run on a day to day basis. In business, there is no one size fits all solution to these matters and the Georgia company LLC thus provides ways to customize such fundamental matters for your particular business situation.
FEDERAL INCOME TAX OPTIONS
The 1997 IRS regulations allow a Georgia LLC to choose and decide on the way it would be taxed. There are no longer any additional requirements to qualify for a single layer of pass through taxation.
When you form a GA LLC, your business will be taxed via a single layer of pass through taxation by default. This type of taxation avoids the potentially significant double taxation effect of corporate taxation.
However, in some circumstances, a corporation tax structure might be more advantageous. In these cases, a Georgia company LLC may file an election with the IRS to be taxed as a C corporation or an S corporation.
If you would like more information on the Georgia LLC (limited liability company), visit Georgia Business Formation-a company that specializes in Georgia LLC formations: http://www.GeorgiaBusinessFormation.com
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Latest page update: made by Anna112
, Jan 15 2009, 5:36 AM EST
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