Starting A Business: Why An LLC May Be Right For You
You have a potentially lucrative idea and some money to get started. Therefore, you may be feeling the urge to dive in and worry about the details later. After all, does it really matter what kind of business entity you choose?
The answer, of course, is an emphatic “yes.” The business structure you choose will have a large impact on everything from taxes to regulation to personal liability. That’s why it is so important to lay the correct foundation for your business with the help of an experienced attorney.
Key Features Of A Limited Liability Company
Two advantages of forming an LLC are flexibility with taxes and with profit allocation. Owners and co-owners of the LLC can choose whether they want to be taxed like a corporation or through their individual returns (much like a sole proprietorship). Additionally, business profits can be flexibly allocated and are not necessarily tied to each owner’s stake in the business.
Limited regulation is another advantage. While an LLC requires more planning and structuring than a sole proprietorship, it enjoys lighter regulations than a C-corporation or S-corporation.
Perhaps most importantly, an LLC partially shields its owners from personal liability for the business’s debts (and sometimes court judgments against the business). If the company falls on hard times or faces unexpected legal/financial challenges, LLC structuring can protect you and your family from financial ruin.
How Our Firm Can Help Your Business Get Up And Running
Like many things in life, forming an LLC or other business entity requires careful planning and, of course, paperwork. The attorneys at our firm are ready to guide you through all aspects of creating your LLC, including:
- Drafting and filing the articles of organization and paying related fees
- Drafting an operating agreement
- Obtaining any necessary licenses and permits
- Registering your unique business name with the state
- Helping you understand your rights, responsibilities and liabilities as the owner of an LLC
- Choosing a registered agent for the company
It is said that an ounce of prevention is worth a pound of cure, and that also applies to starting a business. It may cost more money to work with a lawyer from the beginning, but thoughtful planning now could end up saving you significantly more money later on by helping you avoid the mistakes that business owners commonly make.
Contact Us Today For A Free Consultation About LLC Business Formation
The law offices of Kenneth I. Gross & Associates are located in Los Angeles and Rosemead, California, and we serve clients throughout the area. To take advantage of a free initial consultation, send us an email or call 213-784-4232. You can also call toll-free at 866-634-2816.