llc west virginia, or Limited Liability Company, is a corporation that is organized under the laws of West Virginia. It protects its owners by establishing a limited liability for the company. A personal guarantee is also given in case the company fails to perform the duties laid down by the will. This gives business owners an added protection and ensures that their property won't be lost or misused by the LLC.
Under the law, an LLC is separate from its owners and therefore it is not considered as a form of corporate entity. However, an LLC can still have the same tax benefits as other corporations. Like any other company, it pays state tax and can also receive state tax breaks based on its income and ownership structure. In some cases, the state can exempt certain types of business activity.
Business owners can choose to incorporate their LLC in Virginia or not. The choice will affect the operation of the business. A sole proprietorship is considered as a corporation but it is only for tax purposes. Under the law, a sole proprietorship is treated as a liability. As such, if it incurs liability, the liabilities become the liability of the LLC and the owner will have to personally pay for those.
Creating an LLC in West Virginia
If the LLC becomes a partnership, then the liability will be shared between the partners. This means that each partner incurs his own liability and shares in the losses. If the business grows and gets bigger, so does the number of partners. And since there are many partners, more liability is created and the amount of taxes is expected to increase.
Most often, sole proprietors and corporations fail to register their business because of a lack of knowledge and awareness. However, they need not worry too much. The first step towards registering an LLC in West Virginia is to find out what the process involves and what the state requires from an interested party. An attorney with expertise in LLCs and filing is a good start. He will be able to fill out an application and advise on the steps to take. A real estate agent or a lawyer is also advisable to help put together the documents.
After the completion of the formalities, a registration certificate is issued. The name of the LLC, its registered agent and its office is printed on this document. The registration must then be filed with the secretary of state. All these documents should be sent to the IRS, which will then verify and print out a notice.
All this legal mumbo jumbo may seem overwhelming. But if the purpose of starting an LLC is to protect personal and corporate liability, all this shall seem like a big thing. There is no doubt that the formation of an LLC has become a necessity in the United States. For starters, an LLC will ensure that the owner or owners have less liability for income tax and corporate tax. It is recommended that an LLC is formed by people who are not directly related to any business.
It is imperative to have a complete set of business and personal records at hand. This way, it will be easier to prove that you are running a legitimate business. Plus, if you have any questions, there is a hotline that can be contacted. You do not even have to talk to your lawyer before you talk to an accountant. Instead, if you are comfortable enough to do so, you can consult an accountant for his opinion.
A lot of entrepreneurs think that their limited liability company is just a way to legally conduct business. If this is your goal, then this is certainly your prerogative. But as a means of protecting your personal and corporate assets, an LLC does make sense. After all, in the unlikely event that something happens to the business itself, you still own it - albeit in a much less formal manner.
As an example, suppose you are sued by a customer for breach of contract and negligence. Suppose you do not respond properly to the suit. Suppose the customer files another lawsuit a few months later. Now, if you had created an LLC in West Virginia, and were represented by a lawyer, you could easily argue that you did not personally contract with the customer, and therefore did not breach the contract. This would hold true, even though the customer is now personally liable for the breach.
A different situation may arise where a business co-owner wants to shield personal assets from the liability of the business itself. If the business does not fail, the owners may be left holding the bag, as it were. However, in many cases, it makes more sense to set up the LLC in the first place so that all of the liability is placed on the personal owner. By doing so, the business owner protects himself from the personal liability that would otherwise accrue as a result of an inability to continue business. Also, a "personal owner" cannot be held personally liable for the actions of his LLC partners. This allows for greater financial protection for the LLC partners.
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