Guard your vision with the armor of an LLC

Limited Liability Company

Limited Liability Company (LLC) An LLC is a business entity that combines elements of a corporation and a partnership. Owners are called members, and they are not personally liable for the company's debts. It provides flexibility in management and operations and typically offers pass-through taxation (meaning the business itself isn't taxed, but the income is passed through to the owners who report it on their individual tax returns)

Tax Filing for Single-Member LLC Even though an SMLLC offers limited liability protection similar to that of a corporation, for tax purposes, it's often treated like a sole proprietorship. As a result, the business's income and expenses are typically reported on Schedule C of the owner's individual tax return, unless the LLC elects to be taxed as a corporation.
Single-Member LLC (SMLLC):

Ownership: Only one owner or member.

Taxation: By default, it's considered a disregarded entity for federal tax purposes. Income and expenses are typically reported on Schedule C of the owner's individual tax return.

Multi-Member LLC (MMLLC):

Ownership: More than one owner or member.

Taxation: By default, it's treated as a partnership for federal tax purposes. Income, deductions, and credits are passed through to members and reported on their individual tax returns. Members also receive a Schedule K-1 which shows their share of the income and expenses.
Texas Franchise Tax:

It's a privilege tax imposed on entities chartered in Texas or doing business in Texas. Both SMLLCs and MMLLCs may be subject to this tax, though there are thresholds and exemptions that might apply.

Sales Tax:

Texas imposes a state sales tax on retail sales, leases, and rentals of most goods, as well as taxable services. If an LLC is involved in selling taxable goods or services in Texas, it typically needs to collect and remit sales tax.