Things You Should Know Before Setting Up An LLC For Your Business - Part 1

 

An LLC, or limited liability company, is a popular type of business entity. Many small business owners choose this type of business structure. An LLC is a business structure that has similar features to both corporations and partnerships.

 

One of the main reasons business owners like LLCs is because of the liability protection they offer. This means that the personal assets of LLC owners, often called “members," are usually safe if the business runs into debt or legal troubles. It's different from a sole proprietorship, where the owner is personally liable for the business's debts.

 

This 5 part series of articles will provide a basic overview of things you need to know before setting up an LLC for your business venture:

 

• Overview of a Limited Liability Company (LLC)
• How to set up an LLC
• How to set up an LLC business bank account
• Business license requirements to operate an LLC
• LLCs and pass-through taxation

 

Part 1 addresses Overview of a Limited Liability Company (LLC). Part 2 will address How to set up an LLC. Part 3 will address How to set up an LLC business bank account. Part 4 will address Business license requirements to operate an LLC. Part 5 will address LLCs and pass-through taxation.

 

Overview of a Limited Liability Company (LLC)

 

An LLC, or Limited Liability Company, is a type of business entity. It combines elements of sole proprietorships and corporations. It offers a unique blend of flexibility and protection for its owners. These owners are often referred to as members. Here are the key features of an LLC:

 

• Liability Protection: This is one of the most attractive aspects of an LLC. Owners get liability protection. In most situations, members are not personally responsible for the company's debts or liabilities. This means if the business incurs debt or is sued, the personal assets of the members remain protected.
• Flexibility in Management: Unlike corporations, LLCs are flexible. Corporations have fixed management structures with directors and officers. LLCs can either be managed by their members (member-managed) or by appointed managers (manager-managed).
• Pass-Through Taxation: By default, an LLC is a pass-through entity for taxes. This means that the company's profits and losses are passed directly to the members. These members report them on their individual tax returns. This avoids the double taxation that some corporations face. Read more about pass-through taxation in the section below.

 

Many business owners choose to start an LLC because it offers simplicity and versatility. Operating an LLC can also lend credibility to a business. It shows potential clients, partners, and suppliers that the business is a formal legal entity.

 

Call your Amarillo Business Attorney Today and Get Help Setting Up The Legal Structure For Your Business

 

Starting an LLC involves a few steps. It is possible to do this on your own, but getting advice from a business attorney can be very beneficial. They can guide you through formation documents and help you understand concepts like the franchise tax. They can also discuss the difference between important aspects like a manager-managed and member-managed LLC.

 

If your business is a nonprofit or if you have complex questions, an attorney's expertise can be invaluable. Every state has different laws regarding the formation of an LLC. Understanding the basics and seeking help from a legal professional when you need it can save you time and money later down the road. A business attorney in your area can help you with matters such as how to name your LLC, assistance with drafting a buyout agreement, understanding the tax implications of your LLC, and more.

 

Choosing a legal entity for your business takes research and effort to ensure you are complying with the laws. You may want to hire a business attorney to assist you with the more challenging aspects of small business formation, such as drafting and filing documents and complying with local laws. Whether you find yourself grappling with a business debt liability issue or just need some guidance on whether to go with a sole proprietorship, a local attorney experienced in business organization can help. Many people have similar questions and go through the same line of questioning when deciding how to set up a new business. It can be and often is critical that you get legal help understanding the basics of this process. The best way to get this understanding is to contact an experienced Amarillo Business Attorney near you. Stop and take a breath and call an Amarillo Business Attorney who has had decades of experience.  Pick up the phone and call Amarillo Business Attorney Bill Cornett.  Bill is your choice as an experienced business attorney in Amarillo and the Texas Panhandle.  Don’t waste another minute.  Call him today.

 

Your most important action may end up being the phone call that you make to your Amarillo Business  attorney.  In the Texas Panhandle that call should be to Amarillo attorney Bill Cornett.  Contact the Law Office of Bill Cornett. Be smart…remember these phone numbers (806) 374-9498 or (800) 658-6618.

 

Put Cornett Law Firm’s 50+ years of experience to work for you

 

Bill Cornett, Amarillo Attorney, with Cornett Law Firm, offers affordable, qualified services as an experienced personal injury lawyer and probate attorney. Bill also has experience in estate planning and agriculture law. Sit down with Bill at his office located at 612 S. Van Buren St. in Amarillo TX by calling (806) 374-9498 or (800) 658-6618 TODAY to schedule a free consultation.