If you would like to establish, structure, or restructure a business entity, the Law Offices of Peters and Associates, PLLC can help you. We can create a sole-proprietor company, partnership, corporation, or LLC that meets the requirements of state law.

 

Limited Liability Company (LLC)

A lot of business owners like to operate under an LLC because their personal assets, such as stock, bank accounts, vehicles and their other LLCs, aren’t at risk if an accident or other incident occurs on premises or if their business is involved in a lawsuit.

Generally, all that is at stake during a lawsuit against an LLC is each member’s investment in that LLC business. Often, owners of multiple properties split them up into separate LLCs to segregate their problem assets from their premium assets. Of course, LLC owners — or “members” as they’re called — are not exempt from personal actions of fraud or negligence. LLCs allow for flexible profit distribution among their members. They also provide a veneer of personal privacy when a plaintiff attorney is doing an asset search in anticipation of filing a lawsuit.

On the tax side, an LLC benefits greatly from its classification as a “pass-through” company, which means its income is passed through to its owners and claimed on those owners’ individual returns. Hence, it is subject only to capital gains on the ownership shares of the member, and not to corporate capital gains taxes, so there’s no double taxation. LLCs with just one owner-member, however, are taxed as a sole proprietorship. LLCs are certainly not headache-free. They can be relatively expensive and complex to set up and may be dissolved if a member dies or withdraws.