Flexibility

The LLC is considered the most flexible form of business organization. For federal income tax purposes it can be treated as a sole proprietorship, a partnership or a corporation. The person or persons forming the LLC will make this election when filing an application for a federal employer identification number (IRS Form SS4), which must be filed for all LLCs. The LLC encompasses the best features of all other organization forms: it generally provides the same degree of liability protection as a corporation or registered limited liability partnership (RLLP) while providing nearly as much flexibility as a partnership or sole proprietorship.

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