Although it may not be appropriate for all startups, a limited liability company has become a popular option in California. Certain industries, in particular, have embraced the LLC option, including real estate, joint ventures between corporations or with foreign partners, venture capital, petroleum production, as well as theatrical investors. Let’s take a closer look at this business formation choice.
Some might characterize an LLC as a hybrid between a partnership and a corporation. For example, an LLC does not have to be taxed twice, like a corporation. Instead, its owners can elect for the income from the LLC to be taxed like a partnership. In terms of liability, however, an LLC offers the protections more traditionally associated with a corporation.