Limited Liability Company

Discussion in 'Legal Issues' started by rmartish, Mar 31, 2010.

  1. #1
    Is it a good idea to form a Limited Liability Company (LLC)? What are the advantage to forming one?
     
    rmartish, Mar 31, 2010 IP
  2. njbrodka

    njbrodka Peon

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    #2
    It's definitely the BEST business model in my opinion... especially for the small business man.
     
    njbrodka, Mar 31, 2010 IP
  3. rmartish

    rmartish Peon

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    #3
    Did you form it like an S Corporation?
     
    rmartish, Apr 1, 2010 IP
  4. slogold

    slogold Peon

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    #4
    depend on your busiens and where you are located
     
    slogold, Apr 4, 2010 IP
  5. AstarothSolutions

    AstarothSolutions Peon

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    #5
    In the UK it has the theoretical benefit of meaning that you and your company are two separate legal entities and therefore debts and liabilities are separate... so if the business goes bust then your creditors cannot repossess your home etc. The reality can be slightly different however in that for large credit lines or for new companies then many creditors will want directors to give personal guarantees to the debt.

    Likewise, a director has a legal liability to act at an appropriate level of competency and failure to do so can make them personally liable, especially if the company cannot afford the liability or if it is action taken by the shareholders
     
    AstarothSolutions, Apr 4, 2010 IP
  6. rmartish

    rmartish Peon

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    #6
    It's the same here in the states. I went to Legal Zoom and they said the same thing. Thank you for the information.
     
    rmartish, Apr 4, 2010 IP
  7. UB Mike

    UB Mike Peon

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  8. Business Attorney

    Business Attorney Active Member

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    #8
    Business Attorney, Apr 6, 2010 IP
  9. tikesh

    tikesh Peon

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    #9
    llc is better then corp if you are going to register business (llc) in U.S then you need to pay limited amount of tax and doesnt need to show revenue.
     
    tikesh, Apr 7, 2010 IP
  10. RonBrown

    RonBrown Well-Known Member

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    #10
    While there are advantages to a LLC, there are also advantages to being a sole trader or partnership. There is no single rule that fits all circumstances and you need to speak to an attorney or accountant on what would be the best solution for your needs. Don't forget that that partnerships and LLC tend to come with a lot more legislation attached and statutory duties that you don't have as a Sole Trader, so can be more work. Everyones situation is different and what's best for one person might not be best for you.
     
    RonBrown, Apr 8, 2010 IP