A series LLC is a special kind of LLC that enables business owners to establish various departments or “series” inside the same organization. Each series is protected from the liabilities of other series and is allowed to have its own members, assets, and liabilities. This organization is more adaptable and less expensive than a parent business and its subsidiaries.
The capacity to handle several enterprises under one roof is one of the key advantages of a series LLC. For each property or project, for instance, a real estate investor could make a separate series, allowing them to keep earnings and losses apart. Additionally, compared to establishing many LLCs, a series LLC only needs to file one tax return, which can save time and money. Professional LLCs
Licensed professionals, including as doctors, lawyers, accountants, and architects, are only permitted to form professional LLCs, sometimes referred to as PLLCs. A PLLC’s main objective is to give individual professionals liability protection while still enabling them to function as a unified organization. The members of this structure, which is akin to a standard LLC, must be licensed professionals in their respective fields.
A PLLC’s main benefit is that it shields individual members from personal liability. In other words, only the company’s assets are in danger if a PLLC member is sued; their personal assets are safeguarded. According to their needs, PLLCs can also choose to be taxed as a sole proprietorship, partnership, S corporation, or C corporation. How long does an EIN remain valid?
The Internal Revenue Service (IRS) issues firms with an Employer Identification Number (EIN), which is a special nine-digit tax identification number. EINs are required for submitting tax returns, opening bank accounts for businesses, and recruiting staff. Even if a firm changes its name or legal form after receiving an EIN, the EIN remains with the company for the rest of its existence.
However, there are several circumstances where a new EIN is necessary. For instance, a business must apply for a new EIN if its ownership structure changes, such as going from a sole proprietorship to an LLC. Similar to this, a company may require a new EIN if it files for bankruptcy and then reorganizes. Should a solo proprietor obtain an EIN?
Although sole entrepreneurs are not required to hold an EIN, doing so has a number of advantages. First of all, an EIN can assist in creating a distinct identity for the firm, which is beneficial for opening a business bank account, requesting credit, and issuing client invoices. Second, a lone entrepreneur will need an EIN if they decide to hire staff members, create a partnership, or an LLC. Last but not least, getting an EIN is free, simple, and takes only a few minutes to do online.