Most clients come to our office with a great idea for a business; they just need help creating that business and giving it life. The first step in any business should be to begin the formation process with the Secretary of State. However, before we can create the business, we have to know what form the business will have. Will it be a limited liability company, a corporation, a limited partnership? There are many to choose from; but at the end of the day, usually only one or two is the right fit for the client.
The Benefits of a Limited Liability Company
Though our office forms business entities of all kinds, the most common business formation nowadays is the limited liability company (LLC). Some clients ask why so many companies use LLC as a business entity. Here are the key things to know about limited liability companies:
- In general, the LLC combines the benefits of a corporation with those of a limited partnership
- The owner has limited liability for the debts and actions of the LLC while still getting the tax benefits of a sole-proprietorship
- In most cases, the LLC will protect your personal assets from claims against the business, including lawsuits
- There can be as few as one member in an LLC or there can be hundreds
- The initial and annual filing fees are less expensive in comparison to other entities
This list of the benefits of an LLC is not exhaustive. There are many more benefits to forming your business this way, but there are also benefits to other entities like partnerships, sole-proprietorships, and corporations.
If you are ready to make your business come to life, our team at Collins Legal has over a decade of experience in business law.