Business Attorney: Specializing in Helping People Start a Company

Any enterprising individual will tell you that running a company is hard work, but for someone with little experience starting one seems even harder. Thankfully the United States is geared towards entrepreneurs and has many options for those setting out to make money on their own. Many smaller groups of people wishing to start their own trade choose to do so as an LLC. You've likely heard this term before, but many do not know what the benefits of this type of company are. A few quick facts and a consultation with a business attorney will get you started on making money in no time.

LLC stands for Limited Liability Company. The United States government as a step between a partnership and a corporation created this type of organization. The entity gets its name from its trademark characteristic- all members of the company have limited liability. This means that an employee of an LLC is not personally responsible for company debt other than the amount that they have invested in it. This allows the members of the company to split the risk of a startup and protect their personal assets.

Many smaller enterprises choose LLCs because they offer the flexibility of a full corporation without the complicated overhead. LLCs give its members limited liability, and the company can be set up to split costs and profits as desired. Under an LLC, one person can assume much of the responsibility whereas a partnership forces an even split. An LLC is regarded as its own entity like a corporation, but it is not required by law to have a board of director and it does not involve as much bookkeeping as a corporation.

At the same time, an LLC is not a good choice for companies seeking massive growth. LLC's cannot be traded publicly, so investors may be more reluctant to fund your project. In some states startup fees and taxes can be higher. Finally, when a member dies or leaves, restructuring must be done or the LLC will be terminated. For companies with a quick turnaround, this can quickly turn into a headache. If you're unsure of whether an LLC works for you, a business attorney can help weigh the pros and cons of your specific situation.

Creating an LLC is a commonplace process, but each company is based in a single state. While all states allow LLCs, each state has different rules and regulations. Many startups seek advice from a business attorney in the area, as they are knowledgeable about the local laws. While it certainly is possible to start an LLC by yourself, terminology and fine print can sometimes be overwhelming to someone new to business. Attorney advice at this stage can sometimes prevent more complicated problems further down the line.

Whatever your situation, the LLC offers a flexible option for taking the next step in self-employment. They are designed as a way to protect yourself and move forward in your enterprise. If you are interested in forming an LLC, your local business attorney is a good resource to learn more about how to get started.