A Limited Liability Company (LLC) is flexible type of business structure. The LLC structure is flexible in governance because many of the corporate formalities of a corporation are not required. ALLC may be operated from an operating agreement that is uniquely drafted to the specific business needs of your particular business. LLC’s also allow for flexible taxation. ALLC can elect to be taxed as a disregard edentity like as ole proprietor ship or a partnership or it can elect to be taxed as a SorCCorp. The LLC structure allows for extreme flexibility and reduction informality all while limiting the liability to the owners.
LLCs provide liability protection to the ownership by creating a corporate veil separating the business from the personal assets of the owners. LLCs are very well suited for service industry businesses, professional service businesses, businesses related to the leasing or management of real estate and any business where flexibility in business structure and taxation are a concern or a desire. The LLC provides its owners with liability protection and a business structure that can grow with the business.
LLCs are governed by an operating agreement that is simply a contract between the owners that states how the business will run. It is so flexible that there are no standard format for operating agreements. Governance by contract allows the LLC members to take more liberties in defining what it means to be an owner and may allow for solutions too ownership difficulties that the rigid formalities of corporate formation will not allow.
The LLC form may be too flexible for some businesses. Businesses that desire investment to grow the business may need to choose a more rigid form of business structure to allow investors more predictability. The LLC form may also not be suited for businesses that would benefit from the requirements and formalities of the corporation.
If this description seems like it fits your business, please click the link below to start your LLC formation.