LLC's are similar to corporations in that and LLC can protect personal assets from business debt. The LLC has an advantage over C corporations which must pay the double-taxation: once at the corporate level, and a second time at the individual level when shareholders are paid dividends from the company’s profits. Below is a list of commonly asked questions about LLCs:
What filings (papers) are required to form an LLC?
The Articles of Organization must be prepared and filed, together with the necessary state filing fees and various initial fees in order to create an LLC.
Is an attorney needed in order to form an LLC?
Absolutely no, it is not necessary to hire a lawyer to form an LLC. Our company can form an LLC for you, saving you time and money that would be involved in the hiring a lawyer. Hiring a lawyer, however, can help you if you need direction about what type of business form you should choose.
How many persons are needed to form an LLC?
How can ownership of an LLC be evidenced?
Once a business formed as an LLC, it is issued certificates that indicate the particular holder’s percentage of ownership within the company.
What is the ownership structure of an LLC?
The owners of LLC's are termed "members." The interests that a member of an LLC is represented by "interest" certificates. The members of LLC's are its managers, and each one has authority according to the percent of their ownership with the company (excepting when managers are hired by members to operate the business).
What are the differences between an S corporation and an LLC?
An S corporation has restrictions which are not the same as those of the LLC's. For instance, the number of shareholders is limited to 75 within the S corporations, while there is no restriction to the number of members that an LLC may have. Also, S corporations are owned by the shareholders and can issue stock, whereas LLC's cannot issue stock but offer “memberships” instead. Directors and officers manage S corporations; members entirely manage LLC's or hire managers to do so. Moreover, S corporations have a life span that is unlimited, while LLC's have a life that is limited (usually about 30 years).