Incorporate in Nevada - What is a limited liability company and Why you Should Incorporate in Nevada
Incorporate in Nevada. What is a limited liability company which you can incorporate in Nevada? A limited liability company, commonly called an "LLC," is a business structure which you incorporate in Nevada, that fits somewhere between the partnership or sole proprietorship and the Nevada corporation.
Like owners of partnerships or sole proprietorships, Nevada LLC owners report business profits or losses on their personal income tax returns; the Nevada LLC itself is not a separate taxable entity even if you incorporate in Nevada. Like a Nevada corporation, however, all Nevada LLC owners are protected from personal liability for Nevada business debts and claims because they incorporate in Nevada - a feature known as "limited liability."
This means that if the Nevada business owes money or faces a lawsuit for some other reason, only the assets of the business you incorporate in Nevada really are at risk. Creditors normally can't reach the personal assets of the Nevada LLC owners, such as the house or car. (Both Nevada LLC owners and Nevada corporate shareholders can lose this protection by acting illegally, unethically or irresponsibly, even if they incorporate in Nevada.)
For these and other reasons, many people say the Nevada LLC combines the best features of both the partnership and Nevada corporate business structures. After doing the appropriate research, you may opt to Incorporate in Nevada.
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