Forming a Limited Liability Company
A limited liability company, or LLC, offers many benefits to individuals forming a business. A business lawyer in Cleveland can explain to you many of the attributes of an LLC, including tax benefits and limited exposure to liability.
Regarding liability, the individuals who form the LLC may avoid personal liability for any injuries caused by the company. However, just because you form an LLC, this does not mean that you are protected from liability forever. Instead, if you take certain actions like commingling personal assets with company property, LLC status may be lost as a business attorney in Cleveland can explain.
Creating a LLC
You will have to take specific legal actions to form an LLC. You can't simply designate your business as a LLC. Instead, you will need to fill out forms and draft certain documents. To this end you may want to seek the assistance of a business lawyer in Cleveland.
Typically, the most important document for creating an LLC is the Articles of Incorporation. There are many important decisions that need to be spelled out in this document, including how ownership will be held and divided as well as how profits will be split. It is very important to have an experienced business lawyer in Cleveland review this document prior to filing.
Benefits of Forming an LLC
An LLC is not right for everyone. To determine if you should undertake the effort and expense of creating an LLC, you should explore the benefits of this business form with a business attorney in Cleveland. In addition, you may want to consider alternate business forms like corporations, partnerships, and limited partnerships.
Some specific benefits of a LLC that a business lawyer in Cleveland can explain include:
- Limited Liability. As mentioned above, the primary benefit of an LLC is limited exposure to liability. Generally, only the assets of the company are exposed and your personal assets are protected.
- Taxes. LLCs are generally not considered separate taxable entities. So the shareholders in the LLC can avoid being taxed twice. The tax savings of a LLC can be very complicated and you will want to discuss the details of your business with a business lawyer in Cleveland.
- Control. The shareholders of the LLC can retain control over the business. The Articles of Incorporation and operating agreement that you draft can set forth the rules for your LLC.
Contact a Business Lawyer in Cleveland
Business formations and choosing a limited liability company can be a very complicated decision. You will want to discuss your business with an experienced business lawyer in Cleveland to learn if a LLC is best for you.
Consult a business attorney in Cleveland at the Law Office of Shapero & Green by calling 216-831-5100.