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Hello students, in this question you have to state about limited liability company.
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So first of all, limited liability company states requires all earning of business to be taxed at the corporate rate.
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So this state option 1 this means that all profits of llc are subject to corporate income tax rate which is generally higher than individual tax rate.
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So this can result in higher tax liability for the llc and its member.
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Higher tax liabilities for llc and its members.
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Option 2 states, llc requires approval to transfer ownership.
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Unlike other business structures such as partnerships, sole proprietor, training, transferring ownership in llc requires approval of all members.
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So it requires approval of all members.
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This can make it more difficult for members to sell, more difficult to sell or transfer the ownership interest, potentially limiting their liability to exit the business or bring in new investors.
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Option 3, llc requires the owner should divide a profit and loss in fixed proportion.
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So the distribution among members typically determined by operating agreement.
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This means the member may not have flexibility to allocate profits...