The National Directory of Certified Public Accountants

Ask A CPA - Limited Liability Entities

What Are Some Advantages And Disadvantages Of Selecting To Be A (LLC) Limited Liability Company Compared To Other Entities?

Some advantages are that it avoids certain S corporation restrictions. It also avoids double taxation of profits. Some disadvantages are that it is currently considered a relatively new business entity with little case law or regulatory law currently available. There is inconsistent treatment from state to state. The entity must have at least 2 owners. Speak to your local CPA about determining the best entity choice to fit your needs

If you need professional help with "Limited Liability Entities" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.