Limited Liability Company (LLC)

A Limited Liability Company can be best described as a hybrid between a corporation and a partnership. It provides easy management and "pass-through" taxation (profits and losses are added to the owner(s) personal tax returns) like a Sole Proprietorship/Partnership, with the liability protection of a Corporation. It's a relatively new form of business created about 20 years ago and now recognized in all 50 States and D.C.

Like a corporation, it is a separate legal entity; unlike a corporation, there is no stock and there are fewer formalities.  The owners of an LLC are called "Members", instead of "Shareholders" "Directors" and "Officers". So in essence, it's a like a corporation, with less complicated taxation and stock formalities.

The heart of a Limited Liability Company is known as the "Operating Agreement". This document sets the rules for operating the company and can be modified as the business grows and changes. Our EasyLLC™ service includes a fully personalized Operating Agreement (as well as an editable copy in Microsoft Word format) for you to modify as the company changes.

Operating an LLC is less formal than a corporation, usually only requiring an Annual Member's Meeting and Member's agreeing to changes of the Operating Agreement.

Click here for Frequently Asked Questions about LLC's

PROS: Provides the liability protection of a corporation without the corporate formalities (Board Meetings, Shareholder Meetings, minutes, etc.) and extra levels of management (Shareholders, Directors, Officers). Taxed the same as a Sole Proprietorship (1 Member LLC)  or Partnership (2 or more Members).

CONS: Usually more expensive to form than a DBA, requires more paperwork and formal behavior.

The Lowdown: The Entity of Choice for 1-5 person startups, has recently surpassed Corporations in popularity.  Easy management and limited compliance requirements have made the LLC the user-friendly solution for small business.

How to Get Started: You can start right now.  We can form your LLC in any of the 50 States and D.C.