LLC Frequently Asked Questions
Is an LLC a corporation?
An LLC stands for Limited Liability Company and is therefore not a corporation. However, an LLC does have the same limited liability responsibilities as a corporation.
How does business asset protection work with LLCs?
One of the benefits of forming an LLC is that member assets are separated from that of the business. So if there’s a lawsuit, the LLC would be sued, not the members or owners. If the LLC is unable to pay the fees, other company-owned assets may be used to help pay down the debt.
Business asset protection helps protect the assets of the members, meaning the only thing the members own that’s at risk is the monetary investment they made in the company or any retained earnings.
What is an LLC member?
If you are an owner of an LLC, you are referred to as a member, and LLCs can have anywhere from one to several thousand members. Learn how to add LLC members with Bizee.
How do I file an amendment for an LLC?
If you need to make a change to your LLC, you'll need to file an amendment by contacting your Secretary of State. Not all changes need to be amended, but generally, any changes to your articles of incorporation or organization will need to be filed. File Articles of Amendment with Bizee.
Do I need to form an LLC to start a business?
If you begin operating as a business by yourself or with someone else you will be considered a sole proprietor or a partnership unless you specifically file for an LLC. However this can leave your personal assets vulnerable and for that reason we recommend forming an LLC. Learn how to convert your sole proprietorship into an LLC.
How do LLC owners pay themselves?
LLC owners pay themselves through “draws” or “distributions,” rather than paychecks. These types of payments don’t have income taxes withheld, so you’ll be responsible for reporting your share of profits on your tax returns. Learn more about how LLC owners are paid.
How do LLC taxes work?
LLCs can be taxed differently depending on whether they are sole proprietorships or have multiple members, and whether or not you elect to be taxed as a corporation. You can speak with your accountant for more information. Learn more about LLC taxes.