I recently formed an LLC holding company and quitclaim deeded my rental property from my wife and my personal name to the LLC's name. The LLC is a single member LLC (which are allowable in Illinois). Why do you state to file a form 8832 for a single member LLC?
I don't understand how filing to be taxed as a corporation gives me any more or less liability protection.
Also, is your operating agreement sufficient to be modified for single member LLCs or would you buy the US legal forms version for $25?
With single member LLCs, you may not have the dual layer of liability protection known as "charging order protection." Charging order protection is a type of court order that restricts the claims of certain assets, such as securities and property, to their fiscal income only. Under charging order protections, assets can’t be liquidated or sold. In the eyes of the IRS single member LLCs are viewed as disregarded entity. This means that you are taxed exactly as if you were a sole proprietorship. Typically the only instance in which this is desirable if you’re using the LLC to hold real estate. You are going to want to speak to an accountant to determine which tax option will be best for your scenario.
Many of our clients do use our operating agreements for their holding companies. We also provide you with an editable version through our Entity Management System. For more information on single member LLCs you can read our page on Single Member LLCs.
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What is your first step? Simply choose which of the following two options applies to your business:ALREADY INCORPORATED in the state of Nevada? 2015/08/15 - Your annual fees increased from $325 to $650, and that’s not including the Commerce Tax if it applies to your business! Further, you will now be required to file your tax return with the NV Department of Taxation with June 30th as the fiscal year, not the calendar year! Review these changes with your tax advisor immediately! If you choose to re-domicile your corporation in another state, MyLLC will file the re-domestication paperwork for you!
MyLLC is committed to assisting you in this process but you must contact us today!Call us toll free at 888.88.MYLLC or fill out the contact form so one of our experts can help you.