When you start a business, it's important to very carefully consider the type of structure you choose. This structure will have a direct impact on your business taxes as well as various legal issues. A reputable Las Vegas business lawyer will be able to help you understand what type of business structure is best for your needs. For many business owners, an LLC or Limited Liability Company is the best choice for their business. There are many reasons why business lawyers consider this type of arrangement to be an excellent choice for entrepreneurs and the majority of business owners.
What Is a Limited Liability Company?
A Limited Liability Company is a legal structure designed to offer a business owner, or multiple owners, the flexibility that is often enjoyed with a partnership structure but with added protection and an excellent degree of flexibility. For example, individual partners in the LLC can decide issues such as management rights, how taxes are calculated, and even how profits are shared among the members.
Understanding the Pros and Cons of an LLC
One of the biggest advantages of structuring your business as an LLC is that it offers a lot of flexibility. You'll need to file articles of organization with your state, but you'll also be able to have more freedom to organize the management structure than you would with a corporation. Additionally, an LLC protects the individual business owners from personal liability.
Of course, an LLC can also pose some disadvantages, such as leaving each shareholder or owner responsible for reporting profits and losses on their individual tax returns. This pass through taxation can make investors hesitant to invest in an LLC. There's also the lack of management structure that could pose problems down the road. An experienced business lawyer can help by making sure a detailed operating agreement is constructed.