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One Comment on “what is th edifference between LLC and not for profit companies?”

1. MACK
   August 6th, 2011 at 6:35 am

   LLC is a for profit entity while a not for profit is well, non profit From Wikipedia, “a non-profit structure (often called “non-profit org” or simply “non-profit” or “not-for-profit”) is an cleaning whose primary objective is something excluding the generation of profit. Such organization are typically funded through a mix of private or public (ie. government) donations”the LLC is designed to give you the best of both worlds: the set liability of a corporation while retaining a level of toll simplicity that resembles a partnership.Features of the LLC Limited Liability Status. The main attraction of an LLC is its fixed liability status, a feature that it shares next to corporations. The LLC limit your personal liability from business debts and damages incurred by the business. It primarily lets you bad the hook from legal liability such as court judgments and lawful settlements obtained against the business. Tax Benefits. Like sole proprietorships, partnership, and S corporations, the business profits and losses of an LLC are taxed at individuals’ income excise rates. You will avoid a corporation’s double taxation, where taxes are reported at a separate business rank. Owners of the LLC. While owners of corporations are called stockholders, LLC owners are referred to as member. A member, who invests surrounded by the LLC and receive a percentage ownership interest in return, may be an individual or a separate permissible entity such as a partnership or corporation. The percentage ownership is used to divide up the assets of the LLC when it is sold or liquidated, to split up profits and losses of the LLC or to divide up its voting rights. While an LLC can exist next to one member, some states such as the District of Columbia and Massachusetts require LLCs to enjoy two or more members. Flexible Management Structure. An LLC can be run any by its members or a organization group elected by the members. While tons small businesses are managed by their own member, an LLC can easily adopt a management-run structure contained by the following situations: the members want to employ outside organization help; not adjectives of the members want to run the LLC; or an outside investor requests to be given a vote in guidance. Flexible Distribution of Profits and Losses. Similar to partnerships, dividing up profits among the LLC member is not restricted to the members’ capital contributions. You may split up LLC profits and losses any mode you wish, as long as it is provided for surrounded by the operating agreement. An LLC is just a form of endorsed entity, like a corporation or partnership. An LLC can be organized for profit or not for profit, within most states. Most of the time an LLC is organized to obtain the fixed shareholder liability of a corporation, with the flexibility and export tax treatment of a partnership. A not for profit company is organized specifically to engage surrounded by nonprofit activities.******************************…I see your added information above. What is the purpose of your group? If adjectives you are doing is sharing costs, then you may not inevitability to organize an entity. Do you hold a common purpose?

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