Limited Liability Corporation (LLC)

Limited Liability Corporation (LLC)

Limited Liability Corporation (LLC) Law:

A Limited Liability Corporation (LLC) is a form of enterprise that combines elements of a partnership and corporate structures. It is a form of company establishment that provides limited liability to its owners. If you are a new business owner or current business owner looking to change the type of corporation you have, a limited liability corporation can be the right choice for your business.

Benefits of Establishing an LLC

There are important legal advantages to owning an LLC.
  • Members of an LLC can select their tax regime, so they can be taxed as a sole proprietor, partnership, S corporation or C corporation. This provides a great deal of flexibility for business partners.
  • Members of an LLC are protected from some or all liability for acts and debts of the LLC, depending on the state law.
  • In most states, LLCs are treated as entities separate from their members.
  • In most states LLCs can be established with just one owner involved, therefore a partnership is not always needed.
  • Non-U.S. citizens/residents can be members of LLCs.

Disadvantages of Establishing an LLC

While owning an LLC has many advantages, with such great advantages come disadvantages that owners should be aware of before opening a LLC.

  • Members of LLCs must pay self-employment tax. This is contrary to members of a corporation, which eliminates the self-employment because profits can be distributed to the shareholders of the corporation, which is not taxed as self-employment income.
  • The LLC business structure is the most recent of all of the types of business structures. Because of its newness, some of the laws and regulations are still going through transition and can change after you form your business structure.

What a Business Lawyer can do for you:

A business lawyer with experience in establishing Limited Liability Corporations can help shield first time business owners from substantial liabilities that arise with opening a business.

A lawyer can help partners in an LLC select the correct income tax regime to avoid future tax problems with the IRS.

A business lawyer can help individuals/partners in an LLC revise and submit all complex documentation needed for establishing and maintaining an LLC.

Lawyer Referral Service:

If you need a lawyer with experience in the establishment of a limited liability corporation (LLC), contact Attorney Search Network today for a free lawyer referral to a business lawyer with experience in Limited Liability Corporation law.

If you have any questions about the inStart Up provided above, please contact us. Call us toll free at (800) 215-1190 or fill out out online form for your business Closing lawyer referral.

If you have any questions about the inStart Up provided above, please contact Attorney Search Network.