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What Is a Limited Liability Company? What Favorable Nontax and Tax

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Essay

What is a limited liability company? What favorable nontax and tax attributes does the LLC entity form offer taxpayers?


Definitions:

Warranty

A guarantee provided by a seller to a buyer that a product will meet certain specifications or that defective products will be repaired or replaced.

Contingent Liability

A future financial liability that could arise based on the result of a certain event.

Payroll Register

A detailed document recording the payroll information of all the employees in a company, including wages, deductions, and net pay for each pay period.

Net Pay

The amount of an employee's earnings after all deductions, such as taxes and retirement contributions, have been subtracted.

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