Basic Facts about Limited Liability Companies  

Starting a business comes with major decisions. A Fairfax business lawyer can review your business plan and help you decide the best way to structure your company to meet your goals and objectives. One popular business structure is the limited liability company or LLC. Your attorney can counsel you on whether an LLC is right for your circumstances.

Benefits of an LLC

An LLC works as somewhat of a hybrid between a partnership and a corporation. In that way, it has become an increasingly popular organizational choice for entrepreneurs, especially those owning a small business. As your Fairfax business lawyer can explain, the LLC provides a more flexible structure than a traditional corporation in terms of management and formal filing requirements. It also offers similar protection against personal liability of the owners (called members) as a corporation does. In that sense, an LLC can represent the “best of both worlds.” LLCs offer flexible management as well as personal liability protection. Your attorney can also discuss the tax structure of an LLC; they are generally taxed like a partnership. An LLC also provides continuity for the business in the event one of the members passes away or leaves the company.

When an LLC May Not Be Right for You

Even with it’s numerous advantages, LLCs aren’t the best choice for everyone. Your attorney can carefully review how you plan to operate your business and help you make an informed decision. While more and more states recognize LLCs, not all of them do. This can become an issue if your customer base is national or global. Also, even though the LLC has fewer formal requirements as opposed to a traditional corporation, there are still some. Your attorney can review your management goals and challenges and make a recommendation. In the end, the decision is ultimately up to you but your attorney can arm you with the legal knowledge you need to make a good one.Trust an experienced Fairfax business law firm with your legal business needs. To schedule an appointment with Schleifman Law, PLC, call 703-528-1021.