If you plan on starting a business, one of the ways in which your business can become incorporated is to start a Limited Liability Corporation, or LLC. An LLC basically means that all losses and profits are passed on directly to the owner of the LLC, who in turn will pay personal tax on all profits. You might be wondering about some of the more specific ins and outs of an LLC. Read on and discover just a little more about what they are. If you believe a business venture would benefit from being incorporated as an LLC, it is recommended that you hire the services of a trusted attorney who focuses on business law to guide you through the process.
How to Form An LLC
Forming an LLC requires that you go through an avenue of state government. Although the office in which you deal with varies from state to state, it is often the same office that you deal with forming a corporation. You will have to file what is referred to as "articles of organization," which will describe the nature and conduct of your business. Again, this filing fee varies from state to state, but it often costs upwards of $1,000. An LLC only requires one individual to form, and the articles of organization often simply require that you list those individuals who will be considered the proprietors of an LLC and their contact information.
How to Dissolve An LLC
Although the rules for dissolving an LLC change from state to state, there is one general rule of thumb: if one of the individuals named on the articles of organization wants to leave the LLC, then the entirety of the LLC will be dissolved. Under the case that any one member decides to leave the LLC, then the following things must occur: all members must pay any outstanding debts that the LLC has accrued, the deciding members must make a decision regarding whether to start a new LLC or not, all outstanding business obligations must be fulfilled or the members can risk legal action, and all profits must be divided among the members as the members deem fit.
Forming an LLC is not for everyone. Although forming an LLC can be quite difficult and the number of applicants who apply for LLC status and receive it are quite low, actually running the LLC can be quite easy, especially if there is only one member or if the members of the LLC have a good working and personal relationship.
Share17 August 2016
Like many other people, I admire the important tasks lawyers take on every day. I’m amazed at how knowledgeable general attorneys are about a variety of subjects. These professionals can accomplish many complicated jobs seamlessly, such as representing a client in a civil lawsuit, assisting a business with a merger, and acting on a client’s behalf in a medical malpractice lawsuit. Besides creating detailed legal briefs, they must argue their clients’ cases in court in front of a judge, jurors, and others. On this blog, I hope you will discover how crucial general attorneys are to this country’s legal system.