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New Investor's Guide to Limited Liability Companies

Understanding LLCs and Why They Are Important to Your Investments


Millions of investors have never owned a stock or bond but instead have most of their net worth tied up in a family business or startup.  In the past twenty years, Limited Liability Companies, or LLCs, have become one of the most popular ways to hold ownership stakes in these types of businesses.  It is important for you, as a new investor, to understand how they work, why you should care about LLCs, and some of the tax implications. This collection of LLC articles will explain the basics to you so you can educate yourself before meeting with a qualified professional.

1. Limited Liability Companies for Beginners

Limited Liability Companies or LLCs for Beginners
A limited liability company, or LLC as it is often known, is a type of business that combines the benefits of a corporation and a partnership. Take a few, brief moments to read over this list of important benefits and considerations for LLCs before you consider buying equity in one or forming your own.

2. LLC Operating Agreements for Beginners

LLC Operating Agreements

All limited liability operating companies, or LLCs, are supposed to be governed by a contract that the investors sign amongst themselves. This contract is known as an LLC operating agreement.  Here are just a few of the most important provisions you are likely to see in a standard LLC operating agreement.

3. Why So Many Investors Love Nevada LLCs

Nevada LLC

A lot of financial advisers espouse the benefits of using a so-called Nevada LLC to hold family businesses, investments, or other assets.  These benefits include asset privacy, no state level taxes, and much more. 

4. The Beginner's Guide to Delaware LLCs

The Beginner's Guide to Delaware LLCs

A Delaware LLC offers a lot of advantages such as low or no taxes, asset privacy, and low annual filing expenses.  In fact, investing through a Delaware LLC is often a top choice of many professionals, along with Nevada LLCs.  Here are just a few reasons you may want to consider holding your investments through one of these entities.

5. How Families Can Invest Together with an LLC

Families Can Invest Together with an LLC

Families often pool money together to form small businesses, invest in shares of stock, or rdevelop eal estate.  Walton Enterprises, LLC, for example, is a famous family limited liability company through which members of Sam Walton's family control Wal-Mart Stores, Inc., a regional bank named Arvest, and other investments.  Discover how family limited liablity companies can work for you.

6. Will LLLPs Replace LLCs?

To help make limited partnerships as useful as limited liability companies, roughly half of the states in the United States have allowed for the creation of a new type of entity known as a limited liability limited partnership or LLLP.  It functions similarly to an LLC.  How does this new competitor work and is it right for your family business or investments?

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