Important Facts to Know About LLC

Potential business owners or owners just starting out are often uncertain as to whether to be a corporation or an LLC. Some even ask, “What is a LLC?” Below are some important things to know about this entity title as well as steps for getting a LLC.

What is a LLC?

LLC, which stands for Limited Liability Company, is a legal title you give to your business to protect yourself and your assets in case someone sues your business. A Limited Liability Company can be owned by just one person or by several people.

Disadvantages of a Limited Liability Company

• Limited life span – With a limited liability company involving more than one person, the company may cease to exist if one member leaves the business.
• Who’s the Boss? – Unlike large businesses who have presidents or CEOs, limited liability companies often have members of equal status, making it hard to determine who is in charge.
• Taxes – As a member of a limited liability company, you will be subject to paying self-employment taxes.

Steps on Getting an LLC

Getting a limited liability company is a simple process as long as you follow the correct procedure. Here are the steps for getting a LLC.

• Decide on a name of your limited liability company, and make sure the name is available.
• File an Article of Organization with your state and pay applicable fees, which can range from $100 to $800.
• Create an LLC Operating Agreement, which describes the terms for each business member.
• Publish an Intent to Form LLC with your local newspaper, depending on your state.
• Obtain any permits and licenses that may apply to your business.

If you need legal assistance you can also find additional legal aid here and you can search for a lawyer here.