LLC's (Business Law)

Introduction

Limited liability companies offer investors and business owners an alternative to doing business as sole proprietorship, partnership, or corporation. Limited liability companies provide the limited liability of corporations without many of the corporate formalities. It is common to refer to a limited liability company as an LLC.

Potential users of limited liability companies include:
• Start-up businesses
• Estate planners
• Venture capital organizations
• Joint ventures
• Real estate ventures
• Subsidiary companies

You should consider forming a limited liability company whenever you start a new venture or restructure an existing business. The benefits of limited liability companies include their favorable tax treatment, limited liability, flexible allocation of profits and losses, relaxed management style, and reduced formality. This pamphlet explains how to organize a limited liability company with the advice of your lawyer. The legal work is relatively inexpensive and will help you to avoid problems and pitfalls that await those who are not advised by legal counsel.