Whether you are just starting a business, need business advice, have legal issues, or lawsuits pending against you--we can help. We offer a wide range of services to help you start, develop, limit liability, and defend your business.
Limited Liability Company (LLC)
What is an LLC and how is it formed? An LLC is a "limited liability company," and it is just what the same says: it is a company that limits personal liability due to an action that company itself takes. An LLC is an "individual" after it is created. That means it has the ability to sue or be sued, defend or prosecute suits, purchase and sell, etc, etc. The LLC can do whatever the members or member managers allow it to do, as long as the action is legal. What an LLC is very good for is limiting personal liability; however, there is a catch to that also, each person is responsible for their own wrongdoing, so you cannot do something as a member and say the LLC is responsible--even though the LLC may be responsible, you must definitely are too. But, the LLC can protect your assets if it is formed correctly and governed correctly. Is also has one of the most informal methods of management, unlike a corporation. The added benefit of an LLC is that it is not taxed twice on its income. The income from the LLC is only taxed when it is disbursed to its members and then the members pay a regular income tax based off their earnings.
Costs: Flat Fee Tiered Services (all services include fees associated with the formation)
Tier 1: Formation Only: $550.00
*Tier 2: Formation and General Operating Agreement: $900.00-$1,100.00
*Tier 3: Formation and Detailed Operating Agreement: $1,500.00-$3,500.00
*Tier 4: Formation, Detailed and Extensive Operating Agreement--may include taxation issues: Call for consultation, prices will vary.
*More than 3 Members or Member-Managers: add $125.00 per additional Member or Member-Manager (not applicable to Tier 1 services)
Corporations have been around a long time, they are usually the most well known entities, and are expansive in their capabilities. A corporation is much like an LLC in liability limitation but is much older and has more concrete and non-waivable statutory requirements than an LLC. A corporation also has the advantage of being able to issue stock and raise capital by doing so. Like the LLC a corporation is able to limit personal liability as long as you are not the person who committed the wrongdoing. A corporation is not as flexible as an LLC but it is much more structured, which could be a great and needed asset. There are also different forms of corporations such as private and closely-held corporations. Also, with the "check the box" provisions corporations are able to be taxed as a partnership as long as certain criteria are met. Corporations are no longer for everyone and the LLC has given it a run for its money.
Other Forms of Small Businesses
There are many other forms of small businesses and many of them have advantages and disadvantages. If you have questions about other business formations and small businesses give us a call and we will be happy to speak with you about them.