Frequently-Asked Questions

1. Why do you prefer LLCs over other types of companies to join your network?

LLC is an acronym for Limited Liability Company. Let’s look at one type of company – the corporation – to appreciate the LLC advantage.

Corporations are subject to double-taxation where they pay taxes on their earnings and their shareholders pay taxes on their share of the reduced earnings. Shareholder dividends come from these “reduced earnings” because the company has to pay taxes before the shareholder gets his or her share of the company profits. This is why many companies allocate a much smaller percentage of revenue for earnings and look for other ways to increase shareholder value.

The LLC structure is free from the burden of double-taxation where shareholders are effectively taxed two times. Wyoming was the first state to institute the LLC statutes. This happened in 1977. When many of today’s public companies were formed, the LLC was relatively unknown or non-existent.

Equity Score® LLC combines the LLC advantage with our unique business model to deliver value to you and all members of the Equity Score® Network. Our company budget is carefully balanced to allocate 63% of revenue for earnings. Your share of the company’s earnings is passed through the company and goes directly to you.

 

 

 

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