An overview of the LLC structure

An overview of the LLC structure

On Behalf of | Nov 12, 2019 | Business Law |

Louisiana business owners who are interested in protection against liability may be interested in creating a limited liability company (LLC). One of the key benefits of having an LLC is that the owners of the business are not typically personally liable for the organization’s debts. Furthermore, they are less likely to lose their personal assets if a judgment is entered against the LLC. Another potential benefit is the ability to choose how the entity is taxed.

The LLC can choose to be taxed like a pass-through entity or as a corporation. It is possible for sole proprietors to create LLCs if it is in their best interest to do so. To form an LLC, paperwork and a filing fee must be sent to the state in which it will be formed. In some cases, it will be necessary to announce the formation of the company in a newspaper.

The documents sent to the state will typically need to list the names and addresses of those who are members of the company. It is possible to send in paperwork by mail, by fax or through a government website. There should also be an operating agreement that spells out the roles that each member will have within the LLC. This agreement generally does not need to be filed with a state or federal agency.

Business owners who are looking to learn more about LLCs may wish to speak with a business law attorney. This professional may be able to explain in detail the benefits of forming an LLC. These benefits may include greater protection against lawsuits or the ability to be taxed like a corporation. An attorney may help to draft or file paperwork related to creating a new business entity such as a partner agreement.