Limited Liability Company (LLC)

The Limited Liability Company (LLC) is a natural choice for many newly-formed businesses. When compared to a corporation, an LLC is relatively easy to form and is a very flexible business entity. In addition, an LLC can shield its owner or owners from personal liability for any business debts. In this way, LLC combine the flexibility of partnerships with the protections of a corporation, making them very attractive to new businesses.

Shielding an owner from liability is only one of the reasons why LLCs are selected. Other benefits include:

• Tax Flexibility. LLCs are not a separate taxable entity, and LLCs are not directly taxed. Depending on the makeup of the LLC, members of the LLC have several options for taxation. Members may elect to file as though the business was a corporation or as a traditional partnership. In single member LLCs, profits and losses can be taxed on the member’s tax return. The LLCs operating agreement will detail how the entity will be treated for tax purposes.
• Less Paperwork. There are fewer restrictions and required paperwork on LLCs when compared to other entities like corporations.
• Less Governance.  LLCs do not need a board of directors or group of partners. Thus, there are fewer people who have input on the operation of the business. An LLC can be run with a single owner.

Our attorneys will assess the needs and goals of your business to determine if an LLC is the right fit. If an LLC will give you the most benefits, our office can assist in setting up the LLC as a business entity that is compliant with state regulations.

To form an LLC, you must file articles of organization and other forms with the Secretary of State. There are various pieces of information that need to be including in this filing, including the following:

• The LLC name
• The purpose of formation
• The registered agent’s name and address
• Whether it is member-managed or manager-managed
• The duration of the entity
• The effective date
• The name, signature, and address each organizer

It is important to recognize that errors in your articles of organization could have significant consequences. For example, an error in formation documents could cause tax issues. Also, the necessity of having to file additional paperwork, or even the rejection of your filing entirely. The assistance of an attorney will ensure that your LLC is created properly and in a way that will protect you from being personally liable for your business debts.

If you are considering forming an LLC for a new business venture or have an existing LLC and need legal advice or representation, you should call Kilo Flynn today. Our attorneys have represented the business needs of many business owners and LLC entities throughout Missouri and Illinois. To schedule an appointment with one of our lawyers, call our office today at xxx-xxx-xxxx contact us online.