The Virginia limited liability corporation designation was created expressly for the small business owner. It has the same benefits that a corporation does, but does not have the same drawbacks.
Both the limited liability company and the corporation offer the same level of liability protection. They are both business protection vehicles and provide a layer of protection between you personally and your business. This is a must have today given the growing number of lawsuits.
VIRGINIA LLC IS A LESS COMPLICATED LEGAL ENTITY
A Virginia LLC has advantages over a corporation because you gain a legal entity that is much simpler. A Virginia limited liability corporation has none of the required statutory legal formalities of a corporation, making it easier to maintain.
VIRGINIA LLC IS MORE FLEXIBLE
The LLC also provides a much more flexible business vehicle. Owners are able to tailor the way the business is run in accordance with their own rules.
Conversely, the LLC allows owners to structure their businesses the way they would like.
VIRGINIA LLC HAS MORE TAX CHOICES
LLCs are popular in Virginia because of changes to IRS laws in 1997. At that time, the IRS set up "Check the Box Regulations" that let owners of Virginia LLCs decide how to file taxes; whether at a single-level taxation, as an S corporation or as a C corporation.
With this change a Virginia LLC can still enjoy all the benefits of being a limited liability corporation under state law and acquire the perks of corporate taxation.
ANNUAL FEES FOR A VIRGINIA LLC ARE SMALLER
In the State of Virginia, there is a minor yearly fee you must pay to renew the registration of your Virginia LLC. The fee is set at $50. The fee does not change, no matter how many members you have or how many shares you have issued.
In contrast, the minimum annual fee for a corporation is $100 annually and it can be more. As a corporation equity structure gets more complex or more shares of stock are issued, the fee increases significantly and can be as much as $1700 a year.
SUMMARY
A corporation is good for a more sizeable business, but small business can benefit tremendously from a Virginia LLC. Limited liability corporations give you the protection you need for your business without all the restrictions of a corporation. - 15246
Both the limited liability company and the corporation offer the same level of liability protection. They are both business protection vehicles and provide a layer of protection between you personally and your business. This is a must have today given the growing number of lawsuits.
VIRGINIA LLC IS A LESS COMPLICATED LEGAL ENTITY
A Virginia LLC has advantages over a corporation because you gain a legal entity that is much simpler. A Virginia limited liability corporation has none of the required statutory legal formalities of a corporation, making it easier to maintain.
VIRGINIA LLC IS MORE FLEXIBLE
The LLC also provides a much more flexible business vehicle. Owners are able to tailor the way the business is run in accordance with their own rules.
Conversely, the LLC allows owners to structure their businesses the way they would like.
VIRGINIA LLC HAS MORE TAX CHOICES
LLCs are popular in Virginia because of changes to IRS laws in 1997. At that time, the IRS set up "Check the Box Regulations" that let owners of Virginia LLCs decide how to file taxes; whether at a single-level taxation, as an S corporation or as a C corporation.
With this change a Virginia LLC can still enjoy all the benefits of being a limited liability corporation under state law and acquire the perks of corporate taxation.
ANNUAL FEES FOR A VIRGINIA LLC ARE SMALLER
In the State of Virginia, there is a minor yearly fee you must pay to renew the registration of your Virginia LLC. The fee is set at $50. The fee does not change, no matter how many members you have or how many shares you have issued.
In contrast, the minimum annual fee for a corporation is $100 annually and it can be more. As a corporation equity structure gets more complex or more shares of stock are issued, the fee increases significantly and can be as much as $1700 a year.
SUMMARY
A corporation is good for a more sizeable business, but small business can benefit tremendously from a Virginia LLC. Limited liability corporations give you the protection you need for your business without all the restrictions of a corporation. - 15246
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