A main reason the Georgia limited liability company has become the entity of choice for small business is because in 1997, the IRS passed regulations that allows for the business entity to choose the way the business will be taxed. There are no longer any additional requirements to qualify for a single layer of pass through taxation.Do you want to learn more? Visit more info here
When you form a Ga LLC, your business will be taxed via a single layer of pass through taxation by default. This type of taxation avoids the potentially significant double taxation effect of corporate taxation.
However, in some circumstances, your accountant may advise that a corporation tax structure is more advantageous. In these cases, a Georgia company LLC may file an election with the IRS to be taxed as a C corporation or an S corporation. The S corporation qualification does require that the entity and its owners meet a set of requirements . You get more choices when it comes to how your business income will be taxed.
Having a separate structure as the business entity greatly facilitates the raising of capital and provides a well known structure to do so which in turn reduces the costs to raise money for your business needs.