What is a LLC?
What is a LLC?
A Limited Liability Company (LLC) is a legal business entity that limits the company’s members from risk of loss. This means that the private assets of an LLC’s owners and members are protected if the company fails, and only the amount they have invested in the company is at risk. Similar to an S corp, LLC’s also avoid double taxation. LLCs are established by filing articles of incorporation and are subject to state regulations, which vary state-to-state. The owners of an LLC are usually referred to as “members,” as the structure is more of a hybrid between a corporation and a partnership or sole proprietorship. States determine what types of entities can be part of an LLC; not all types of organizations can become members. Most states do permit a “single-member” LLC, or those having only one member. Because these structures are so specifically regulated by states, it’s important to consult with the Secretary of State’s office, as well as a good accountant and lawyer, for more information before choosing this option.
NEXTSTEPS | 1.16.21
Related Blog Posts
Additional Funding Available for the Payroll Protection Program (PPP)
Now that Congress has supplemented the first round of funding, those who haven’t yet applied for PPP funds should do so soon, in order to get in line for the loans.
SBA Economic Injury Disaster Loan
SBA Economic Injury Disaster LoanCARES Act Expands Economic Injury Disaster Loan Program Pentacle remains dedicated to continuing to provide a high level of support to artists during these extraordinary circumstances. Alongside many other key and respected...
Investing during COVID-19 FAQ
Investing during COVID-19 FAQ Tips for Maintaining Good Financial Health as an Artist A market downturn might feel like a strange time to be thinking about your investments, but there are critical steps you can take to maintaining good financial health as an artist...
Unemployment Benefits Extended for Freelancers
Unemployment Benefits Extended for FreelancersLearn more about how you can apply for Unemployment Insurance As businesses have closed and vital streams of income have been cut short for performing arts companies across the country amid the coronavirus pandemic, there...
Paycheck Protection Program (PPP)
Apply Now to CARES Act LoanPentacle remains dedicated to continuing to provide a high level of support to artists during these extraordinary circumstances. Alongside many other key and respected organizations in the field, we have begun accumulating and curating...
Tax Filing Extension
Tax Filing ExtensionsTax Deadline Extension Helps Arts Relief Pentacle remains dedicated to continuing to provide a high level of support to artists during these extraordinary circumstances. Alongside many other key and respected organizations in the field, we have...
Pentacle’s nextSteps is supported, in part, by public funds from the National Endowment for the Arts, the New York State Council on the Arts with the support of Governor Andrew M. Cuomo and the New York State Legislature, and the New York City Department of Cultural Affairs in partnership with the City Council. Pentacle receives private support for nextSteps from the Booth Ferris Foundation, the Howard Gilman Foundation, the Rockefeller Brothers Fund, and the New York Community Trust.
