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Many people are surprised to learn that the LLC business entity is a fairly recent phenomenon. Wyoming was the first state to legislate the creation of LLCs in 1977. Most states didn’t jump on the LLC bandwagon until 1988 when the IRS classified the LLC as a pass through entity for tax purposes. This ruling turned LLCs into the popular monster
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You've decided you need an LLC for your real estate investing or
small business. But the attorney wants several hundred dollars
or more to fill out the paperwork. Isn't there a cheaper way to
set up an LLC? You bet. You can do it yourself.
An LLC formation, by design, is very straight forward. To set up
an LLC, you file articles of LLC formation or
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"S Corporation or LLC?" is a common question for new business
owners. I have several people call me each week asking this.
I always tell them the question is impossible to answer. And
here's why. An LLC is chameleon for income tax purposes.
Therefore, an LLC can be anything the owner or owners (who are
called members) want the LLC to be--including an S corporation.
An LLC
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