LLCs are preferred in Iowa by more than 3 to 1
Posted on 03/21/2010 at 01:28 PM by The Newsroom
The formation of Iowa LLCs continues to outpace corporations. In 2009, 8,422 LLCs were organized in Iowa compared to just 2,571 for-profit corporations. This is a better than 3 to 1 ratio. This is consistent with almost every other state in the Union save California and New York. Why are corporations still favored over LLCs in these two states? In New York it has to do with the holding of the Tax Appeals Tribunal that all members of a limited liability company are subject to per se liability for the taxes due from the limited liability company. In California it has to do with the unreasonable fear of the trial lawyers and their influence on legislation that prevents most businesses that need a license under the California Code (for example, contractors and physicians) from operating as LLCs. In addition, LLCs in California are subject to a substantial tax on gross receipts over $250,000. This tax does not apply to corporations or limited partnerships.
The material in this presentation is not intended, nor should it be construed or relied upon, as legal advice. Please consult with an attorney if specific legal information is needed.
Categories: Commercial Litigation
Questions, Contact us today.
The material, whether written or oral (including videos) that is posted on the various blogs of Dickinson Law is not intended, nor should it be construed or relied upon, as legal advice. The opinions expressed in the various blog posting are those of the individual author, they may not reflect the opinions of the firm. Your use of the Dickinson Law blog postings does NOT create an attorney-client relationship between you and Dickinson, Mackaman, Tyler & Hagen, P.C. or any of its attorneys. If specific legal information is needed, please retain and consult with an attorney of your own selection.