The National Directory of Certified Public Accountants

Ask A CPA - Limited Liability Entities

What Is A LLC?

A limited liability company, like a corporation, is set up and created under state law. Its owners are referred to as members. The entity gives its members the best of both worlds - Corporate liability protection with the advantages of partnership taxation. Forming a limited liability company is more expensive than forming a corporation and may not be necessary for your situation. Speak to your local CPA in detail to determine if forming or changing your entity status to a limited liability company is the correct choice for you.

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.