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 SIMPLER LEGAL ENTITY
However, when you form a Virginia LLC you get a much simpler legal entity than a corporation. There are no requirement legal formalities under the statutes like there are with corporations so a Va limited liability company is 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.
However, when you run your business with a Virginia corporation, you must adhere to the statutory framework, procedures and continuing requirements for maintenance, and you must have a Board of Directors.
VIRGINIA LLC HAS MORE TAX CHOICES
One of the main reasons the limited liability company in Virginia is so popular is because in 1997, the IRS passed the Check the Box Regulations which allows a Virginia LLC to choose its tax structure among a single level of taxation, C corporation or S 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.
VIRGINIA LLC CAN RESULT IN LESS ANNUAL FEES
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.
With corporations, the annual fee starts at $100 and can go up depending on the size of the corporation's equity structure. As it gets more intricate and more and more shares of stock are issued, the fees increase. It can even get as high as $1700 per year.
SUMMARY
Forming a Virginia LLC gives you versatile protection for your small business. If your business is larger or more complicated, a corporation might suit you better. The Virginia limited liability corporation is better for the average small business. - 15254
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 SIMPLER LEGAL ENTITY
However, when you form a Virginia LLC you get a much simpler legal entity than a corporation. There are no requirement legal formalities under the statutes like there are with corporations so a Va limited liability company is 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.
However, when you run your business with a Virginia corporation, you must adhere to the statutory framework, procedures and continuing requirements for maintenance, and you must have a Board of Directors.
VIRGINIA LLC HAS MORE TAX CHOICES
One of the main reasons the limited liability company in Virginia is so popular is because in 1997, the IRS passed the Check the Box Regulations which allows a Virginia LLC to choose its tax structure among a single level of taxation, C corporation or S 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.
VIRGINIA LLC CAN RESULT IN LESS ANNUAL FEES
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.
With corporations, the annual fee starts at $100 and can go up depending on the size of the corporation's equity structure. As it gets more intricate and more and more shares of stock are issued, the fees increase. It can even get as high as $1700 per year.
SUMMARY
Forming a Virginia LLC gives you versatile protection for your small business. If your business is larger or more complicated, a corporation might suit you better. The Virginia limited liability corporation is better for the average small business. - 15254
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