Quote:
Originally Posted by jimhoward
Most privately held corporations are small businesses (less the 500 employees). There are some exceptions, Mars, Publix, and Cargill come to mind, but most are small. Often times the personal assets of the owners in those small companies are pledged against corporate debt.
In the case of Villages Health, its not even a corporation it an LLC. Now if you want to talk LLCs I think there is a argument to be made concerning assets of owners. There the owners are getting the benefit of liability protection, but without incurring the cost of double taxation, and with lower cost of administration. That seems like too good a deal.
|
There is no federal income tax return.
Single member LLC's can be disregarded for tax purposes and the income or the loss reported on their personal return. Multiple member LLC's are reported as either partnerships or corporations. If they have less than 100 members they can elect to taxes as a S Corp avoiding double taxation. Most large LLC's are taxed as C Corporations..
Most small business are able to avoid double taxation. Most large businesses don't.
There is no lower administrative cost because they are a LLC.
The concept of not being able to pierce the corporate veil is what protects investors and allows them to be able to invest in small businesses which may grow larger. Remove the corporate veil and you can say goodbye to many corporate startups and the economy