Limited Liability Companies
The limited liability company (LLC) is the newest form of
business entity. It has enjoyed a meteoric rise in popularity among
both entrepreneurs and lawyers - and for good reason. It's often a
very attractive alternative to the traditional ways of doing
business.
The state laws controlling how an LLC is created and the federal
tax regulations controlling how an LLC is taxed are still evolving.
Fortunately, the evolutionary trends are extremely favorable to
small businesses. On the formation side, it's becoming simpler and
simpler to set up an LLC. On the tax side, LLCs are benefitting from
increased flexibility.
Once you've decided that your business should be organized as an
entity that limits your personal liability for business debts,
you'll have to weigh the pros and cons of forming an LLC against the
pros and cons of forming a corporation. Sometimes, one or the other
will clearly emerge as the better choice. Other times, the
differences are more subtle-which often means that either will suit
your needs equally well.
For forms to use in setting up an LLC, see Form Your Own Limited
Liability Company, by Anthony Mancuso (Nolo), and Nolo's LLC Maker,
an easy-to-use software program that simplifies and automates much
of the work of forming an LLC.
- Partnerships
- Corporations
- Sole Proprietorships
- Incorporation Basics
- Naming your Business
- Writing a Business Plan
- Limited
Liability Companies
- Complying with Zoning Laws
- Getting
Licenses and Permits
- Why Form a Nonprofit Corporation?
-
Choosing Between a Corporation and an LLC
- Leases and Rental Agreements: An Overview
