Limited Liability Company or LLC
The Limited Liability Company or LLC is a unique business entity with a number of desirable tax and business features. It combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. The LLC is quickly emerging as the dominant form of business for non-publicly traded entities. Proper tax planning with a CPA or tax attorney is recommended for any startup. Janik Vinnakota LLP works with many of these professionals to assist your corporate formation and decisions.
Like a traditional limited partnership or corporation, an LLC is formed by filing a document with the state. Instead of shareholders or partners, the owners of an LLC are referred to as “members”. Internally an LLC can be either “member managed” and operated as though it were a partnership but without personal liability to its members, or as “manager managed” and operated as though it were a traditional corporation but again without personal liability to its members.
Advantages of using an LLC lawyer
An LLC lawyer can initiate paperwork and oversee the LLC process in order to make sure that the LLC suits the needs of the group or individual who is seeking to organize. Such needs could include:
• Personal liability protection – An LLC can reduce the liability of an individual who needs to protect herself/himself from judgements, liens, or debts incurred by the company or business. It should be noted, though, that an LLC does not necessarily protect an individual member from being personally liable for their own wrongful or intentional actions.
• Tax advantages – Generally speaking, an LLC does not require as much formality and tax filings as does a corporation or s-corporation. Consult with a CPA or tax attorney for the full benefits available.
• Profit share – LLCs can also offer fewer restrictions regarding the way profits are shared among the members.
Our LLC lawyers can draft an operating agreement for your LLC that helps your business achieve its goals. Contact our small business law firm today to discuss your needs.