Advantages of an LLC

Before doing anything else, producers of independent films should consider WHY they need an LLC.

There are advantages to having a Limited Liability Company tax status. This status is pretty new, since most states have only begun recognizing it since around 1999. Owners of an LLC are referred to as members.

Limited Liability Companies have caught on rapidly since they offer the advantages of very flexible tax treatment, versatility and simple operation, and they offer the most tax liability insulation.

For these reasons the LLC status has become a favorite of small business owners, particularly attorneys. Single member Limited Liability Companies had been barred in some states, but now all fifty states recognize the legitimacy of single owner Limited Liability Companies. No tax is paid when you transfer a sole proprietorship into an LLC.

To start a Limited Liability Company, you must register with your state's office of the Secretary of State and pay a fee to file an article of organization. Articles of organization are generally easy to file and require only the very basic information about your business, such as its name, location, and what it does.

There are fee-based websites that will set everything up for you for the cost of the filing fee, plus their services. There are also instructional books and software available to help you file an article of organization on your own. Fees for the service can run around $150, while state filing fees start at about $50 and can go above $500, depending on the state and the circumstances.

READ MORE - By Chintamani Abhyankar – http://ezinearticles.com/?Tax-Advantages-of-an-LLC&id=3359067 - Mr. Abhyankar is famous for offering financial solutions which anyone can follow. He is currently working on an eBook on identity theft.

© 2009 EzineArticles.com - All Rights Reserved Worldwide.