The Basics of an LLC Business
A limited liability company, which is commonly called as LLC is a kind of business structure that fits somewhere between the partnership or the sole proprietorship and the corporation. A Limited Liability Company with only one owner can choose to be taxed as a sole proprietorship, a C corporation, or have the LLC taxed as S corp. Aside from the taxation, the other major benefit to an LLC business is because it combines the limited liability features of a corporation with advantages from taxation of a sole proprietorship or partnership.
Specifically, a LLC business can be composed up by one or more members, which can be individuals, organizations, even other LLCs or corporations. To set up an LLC, you'll only need a few things…first is to have a business name. Next, your company must have both the Articles of Organization and the Operating Agreement. Lastly, your LLC can usually choose the business entity classification.
If you are concerned about your personal exposure to lawsuits arising from your own businesses, or the business being affected by your personal issues, then it would be good to set up a Limited Liability Company. The peace of mind will help you sleep easier because you will have personal protection against other harmful potential claims against your business.
Here's some more good news…If you want to convert your existing business to an LLC, it is possible and is very easy. Converting a sole proprietorship or a partnership to a LLC is easy way for them in protecting their personal assets without changing the way their business income is taxed or managed. Although, some states in the United States are providing a simple form for converting a partnership to a LLC, this usually called the Certificate of Conversion. More so, in some states before a certain business can be turned into LLC, you must first publish a notice in the local newspaper which states that it is being terminated or changed.
When forming a Limited Liability Company, you can either do some research and go at it yourself, or you can find yourself a guide. Someone that will be able to take you through the process, and help avoid any common mistakes. A professional that has experience handling LLCs from set up, to operating, to closing will be able to give you the advice you need, so make sure you ask someone knowledgeable.
Specifically, a LLC business can be composed up by one or more members, which can be individuals, organizations, even other LLCs or corporations. To set up an LLC, you'll only need a few things…first is to have a business name. Next, your company must have both the Articles of Organization and the Operating Agreement. Lastly, your LLC can usually choose the business entity classification.
If you are concerned about your personal exposure to lawsuits arising from your own businesses, or the business being affected by your personal issues, then it would be good to set up a Limited Liability Company. The peace of mind will help you sleep easier because you will have personal protection against other harmful potential claims against your business.
Here's some more good news…If you want to convert your existing business to an LLC, it is possible and is very easy. Converting a sole proprietorship or a partnership to a LLC is easy way for them in protecting their personal assets without changing the way their business income is taxed or managed. Although, some states in the United States are providing a simple form for converting a partnership to a LLC, this usually called the Certificate of Conversion. More so, in some states before a certain business can be turned into LLC, you must first publish a notice in the local newspaper which states that it is being terminated or changed.
When forming a Limited Liability Company, you can either do some research and go at it yourself, or you can find yourself a guide. Someone that will be able to take you through the process, and help avoid any common mistakes. A professional that has experience handling LLCs from set up, to operating, to closing will be able to give you the advice you need, so make sure you ask someone knowledgeable.
