Business LLC: What You Should Know
Many have seen businesses with LLC at the end of their name, but most don’t really know what it means. A limited liability company, otherwise known as an LLC, is a business structure that is allowed by different state statutes. This type of structure protects the business or company owner’s personal assets in the event that their business is sued. When it comes to starting a business or forming an LLC, it’s essential to understand how the process works before you get started.
Once you have a business model in place, etc. the first step to forming an LLC is filing the articles of organization. This formal legal document outlines the rights, duties, liabilities, and other obligations between the members (owners) of the LLC and the LLC to its members.
After the articles of organization have been filed, it’s then time to decide how you’d like to file with the IRS and be taxed. Depending on the type of business you’re starting and the amount of members the IRS will treat your business as a corporation, partnership, or if there’s only one member as part of that person’s tax return.
The last step, even though it’s not required (just heavily suggested) is to create an operating agreement. This is where you outline all the rules for ownership and operating the business. While many business owners may have thought of these things, it’s essential to have these rules and regulations written down and approved by all members of the LLC.
Overall, it’s a good idea to review all these steps with the potential members of the LLC before you decide to make the first step. Whether you’re ready to file or have more questions about LLCs, our legal team here at Grand Strand Law Group is here to help you every step of the way. Don’t hesitate to reach out, or give us a call at 843.492.5422!