Is An LLC For You?
As an aspiring business owner, setting up a Limited Liability Company could be the answer to your prayers. This form of business enterprise allows you a flexible combination of partnerships and corporation structures. It ensures that the owners are “members” and the number of members can be unlimited. These could be individuals or even other LLC’s.
Before setting up a Limited Liability Company, you first need to research and decide if this is the best way to go for your particular business type. There are various advantages and disadvantages of setting up LLC and this need to be given a serious though before you proceed further. The biggest advantage is the “limited liability” offered to all the owners. This means that a LLC exists as an individual entity and unless the members sign a personal guarantee, they are not personally liable for any debts incurred by the company. There is very limited paperwork while the formation of a LLC and even latter on. Limited Liability Companies also require very little book keeping and hence, is a very easy form of business enterprising. It allows you be a sole member if you do not require partners and is the only kind of business association where a disproportionate allocation of funds does not result in a tax inquiry. This kind of flexibility is what some people require and for them, a LLC is an obvious choice. However, the disadvantage of a Limited Liability Company is that it is not usually possible for it to go public or make stocks.
If you do decide to set up a LLC, the method is very simple. You need to collect a Articles of Organization Form from your Secretary of State Office. This can be easily filled once you decide the name of your company and its business address. The form also requires you to mention the names of all members and the purpose of your business. Once you successfully fill out the form, just file your LLC at the Secretary of State Office with the appropriate fee necessary. You must check up on some other rules your state may levy on the formation of a Limited Liability Company.