A well-liked corporate structure that shields its owners from personal liability is an LLC, or limited liability company. LLCs must submit an Annual Report to the Secretary of State’s office in Alabama each year and pay a filing fee. Failure to submit this report by the deadline of April 15 may result in fines and even the dissolution of the LLC.
Simple information about the LLC, including its name and address, the names and addresses of its owners, and the name and address of its registered agent, must be included on the Annual Report. The Annual Report filing fee in Alabama is $100. The Secretary of State’s website offers online completion of the procedure.
Yes, an LLC may hire people. In actuality, a lot of LLCs employ people, and this is a typical manner for the LLC’s owners to be paid for their labor. The LLC may also offer its workers advantages including health insurance, retirement programs, and paid time off.
You are not permitted to 1099 yourself from your LLC. You are not regarded as an employee as the LLC’s owner, so you cannot get a 1099 form. As an alternative, you would include the LLC’s income on your personal tax return.
While an LLC shields its owners from some sorts of legal disputes, it does not shield them from all of them. Owners may still be held personally accountable, for instance, if they personally guarantee a debt or engage in criminal activity. Furthermore, an LLC does not shield its owners from their own carelessness or wrongdoing. So, is it possible to conceal funds under an LLC?
No, an LLC cannot be used to conceal funds. Since an LLC is a legal entity, the government must be informed of all of its financial dealings. Trying to conceal money under an LLC can have substantial legal repercussions, such as penalties and even incarceration. In all financial transactions involving an LLC, it’s critical to be open and truthful.
Your personal credit can be protected by an LLC, yes. You establish a separate legal entity that is different from its owners when you establish an LLC. Consequently, the LLC, not its owners, is often liable for any obligations or liabilities incurred by the business. As a result, creditors are frequently prohibited from seizing the LLC’s owners’ personal property or credit. It’s crucial to keep in mind that there are some circumstances in which personal liability can still be imposed, such as in fraud cases or situations where the LLC is not properly maintained.