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Limited liability companies and self-employed people

On Behalf of | Jul 29, 2020 | Uncategorized |

There are several different ways to structure a business. Limited liability companies are a great way to organize a company. Just like the name suggests, this kind of company structure offers some protection to business owners. LLCs help New Hampshire’s business owners shelter their personal assets in the event that something goes wrong at work.

In New Hampshire, the limited liability company is an entity that, by definition, is separate from the from its members. The owners of LLCs are always referred to as members. There can be one member or several when it comes to LLCs.

Limited liability companies are set up in every state across the country. In fact, apart from some overarching regulations, LLCs are regulated almost entirely at the state level. That’s why it may be a good idea to find an experienced, locally based lawyer to help a business set this kind of structure up.

Limited liability companies are a great vehicle for self-employed, independent contractors who wish to make their businesses more formalized. Separating things with a business and personal account is a good idea. This makes it clear that the LLC is being properly treated as a separate entity, not just a hobby for one person. LLCs also generally permit for pass through taxation. Pass through taxation means that there’s no double taxation; the LLC does not pay corporate tax. The members do, however pay taxes. Finally, the LLC can eliminate the problem of self-employment tax, provided it’s set up as an S Corporation.

Sole proprietors in New Hampshire who want to learn more about LLCs as an option for a business structure may look for a lawyer experienced in business formation. A business law attorney may be able to explain to a business owner the ins and outs of limited liability companies.


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