How many members must there be?
Most states allow for the creation of single-member LLCs.  Only a couple of states require two or more members.

LLC Meetings?

In many states, an LLC is not required to hold the simple member/manager meetings to maintain the protection provided against liability as are required by officers/directors and shareholders of corporations.

What is a Registered or Statutory agent?

A registered agent provides a registered address for the receipt of service of legal papers and as a local contact for the Secretary of State and other government agencies. The registered agent receives notice of any suits, tax notices, etc. and then forwards them to the LLC. It is possible for you to act as your own registered agent as long as your registered address is within the state that you are forming the LLC in your state.

Who votes in an LLC?
Voting is usually proportionate to the percentage of membership ("ownership") interest, however, different criteria may be established in the operating agreement.

Can I sell Member Shares?
Usually not unless otherwise stipulated by the articles of organization or the operating agreement.

How long does an LLC endure?
Many states now allow an LLC to have a perpetual existence, please check the state requirements as posted, and refer to LLC requirement section prior to completion of questionnaire.

Do I need an Operating Agreement?
Yes, our sophisticated document generator will prepare your Article of Organization and Operating Agreement for you, if you have particular concerns; refer to our referring attorneys with your questions. The Operating Agreement must be created, either prior to or directly after the filing of the Article of Organization. An Operating Agreement may be either oral or written. (for maximum protection it is better to have a written Agreement)

What paper work is required to form an LLC?

The Articles of Organization must be legally drafted and filed with the state office. Initial fees must also be paid at this time. Our sophisticated software will provide the Articles of Organization and the filing fees for you.

What are the advantages of a LLC?

An LLC is a combination of a partnership and a corporation. They provide liability protection for member/owners.

How does an LLC provide protection?

An LLC has its own EIN number (Tax Identification number) and therefore is recognized as another entity separate from you. As a member of the LLC, your personal liabilities will not effect the LLC nor with the liabilities of the LLC effect your assets.   The LLC is treated as though it is a complete new person.

What are the disadvantages of a LLC?

There is no reliable continuity. If a member is dismissed, dies, is disabled or resigns, the LLC is dissolved unless the Articles of Organization or Operating Agreement state otherwise. When the LLC is formed, some states require that a date for the future dissolution of the LLC be recorded. On the other hand, a corporation would continue to exist as an entity in the event of the death, disability or dismissal of a director(s) or officer(s).

Should I choose an LLC or an S corporation?

You must obtain this advice from your Accountant, CPA or personal Attorney, we do not offer opinions regarding which entity is right for you.

How is an LLC taxed?

One advantage of the LLC, default is to be taxed as a partnership.  You also have another option, if an LLC is not taxed as a partnership you can elect to be taxed as a C corporation (as chosen on the IRS 8832 form). One disadvantage of being taxed as a C-Corporation is you will be required to file taxes twice,  once personally and again for the C-Corporation.