What Is an LLC?

When you are forming a business, you will carefully select the right corporate form. One popular choice that entrepreneurs make these days is a Limited Liability Company (LLC). This is a way that allows them to run their business with protection for themselves. An LLC has many of the benefits of a partnership without some of the risks. This is the simplest (and one of the safest) ways of incorporating your business.

Protection from Liability

The “limited liability” part of the term LLC refers to the potential responsibility that the owners would have in the event of a lawsuit. A claimant could not come after the owner’s personal assets unless they managed to “pierce the corporate veil.” Without this corporate form, the owners would be at risk (like they would be in a partnership). If there is a lawsuit against the LLC, or if the company goes bankrupt, only corporate assets could be used to pay the claims, as opposed to the assets of the owners.

Nearly any person or entity (except banks or insurance companies) can be a member of LLCs. An LLC is owned by its members for purposes of taxes. The income is passed through to them, and they will pay individual income taxes on it.  There is no issue with double taxation of income.

Tax Benefits of an LLC

There are many reasons why you would consider an LLC, but before you make the choice, you should consult with a corporate law attorney. They could assist with the necessary documentation and paperwork to get your business started the right way.

Call a Boca Raton Business Law Attorney

The attorneys at Rubino Findley, PLLC, are experienced business lawyers who have helped many business people just like you with their corporate needs. Call us today at 561.220.8464 or contact us online to discuss your business issues.