LLC’s Popularity Continues to Soar
As of November 20, 2007 there are 641,385 of active domestic entities in Georgia and 57,839 which are foreign (incorporated in other states). Of those, 302,688 of the domestic corporations are for profit, 65,153 are non-profits, and 245,915 are Limited Liability Companies. LLC’s continue to be very popular since their becoming possible in Georgia approximately fifteen years ago and continue to be used more than ever before. Due to their ease of formation, the lack of a need for a formal Board of Directors, and that there is no requirement for owner/active members to take a salary, the administrative burden of operating an LLC makes it an attractive choice when considering corporate structure. However, an S Corporation has the added advantage of not requiring FICA/Medicaid taxes to be paid on shareholder distributions as long as a fair and reasonable salary is paid. As your results and how you plan to utilize your corporate entity can vary substantially from that of others, be sure to consult with your CPA for all of the possible tax/operational consequences which you will be facing as your proceed with your business.
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