Limited Liability Company Attorneys
Start Your Business Right with Our Assistance
The limited liability company, also referred to as an LLC, is the most well-known business entity and usually fits well for most businesses. The LLC is a flexible formation that blends elements of the partnership with the corporation. It is a good midway point between the two if neither the corporation nor the partnership work well with your business objectives.
If you are thinking about structuring your new business as an LLC, turn to the limited liability company attorneys at The Presser Law Firm, P.A. for assistance. Clients benefit from knowing what they’ll pay for our services by knowing what everything costs upfront.
What Really Makes an LLC What It Is?
There are numerous factors that go into differentiating an LLC as its own business entity and one that combines certain elements of a partnership and corporation.
Some of these key factors include:
- The owners of an LLC are called members, as opposed to partners or shareholders.
- The number of members is unlimited and can be comprised of individuals, corporations or even other limited liability companies.
- The owners of an LLC have the limited liability of a corporation (that is, members cannot be held personally liable for business debt unless they sign a personal guarantee).
- The limited liability company has a flexible profit distribution – unlike a partnership, where everything is split equally between partners.
- There are no stringent meeting formalities as with the corporation. LLC members don't mandatorily have to meet, which makes operation much less complicated.
- There is no double taxation as with the corporation.
Downfalls of the Limited Liability Company
When a member dies or undergoes bankruptcy, the LLC must dissolve absent a clause in the operating agreement that states otherwise. It is especially important to have an iron clad operating agreement that best represents your individual and business objectives in the present and future.
Another factor some find disagreeable is a lack of privacy. The prospect of going "public" and issuing shares is not an option for the limited liability company at any point. If your intentions are to be listed on the stock market, you must incorporate as a corporation.
Formation of the Limited Liability Company
After receiving the advice of a trusted Attorney and being sure a limited liability company is the right path for you, you must now file the proper paperwork. Luckily for you, this isn't as extensive of a procedure as the corporation and there aren’t many ongoing formalities.
To form your limited liability company, you first must file the articles of organization with the Secretary of State and pay the required filing fee. Next, it is highly advised – however, not required – that you draft an operating agreement that defines the company profit sharing, ownership, responsibilities, ownership changes, etc. as well.
Failure to draft an air-tight operating agreement may lead your LLC into legal issues including early termination if a member passes away, goes into bankruptcy, or gets a divorce. Our limited liability company attorneys are prepared to help you protect what’s important to your business interests.
If any of these procedures seem overwhelming to you or you are unsure of how to draft a sound operating agreement, contact The Presser Law Firm, P.A. and we can help you with any of these steps.
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