Why Form a Limited Liability Company?
The limited liability company (LLC) is a business entity that offers limited liability protection and pass-through taxation. An LLC can be managed by either the members or by managers.
The LLC allows for pass-through taxation as its income is not taxed at the entity level; however, a tax return for the LLC must be completed. Any income or loss of the LLC as shown on this return is passed through to the owner(s). The owners, also called members, must then report the income or loss on their personal tax returns and pay any necessary tax.
As with corporations, the LLC legally exists as a separate entity from its owners. Therefore, the owners cannot typically be held personally responsible for the debts
and liabilities of the LLC.
Advantages of an LLC:
LLCs allow for pass-through taxation Members on an LLC are not typically held personally responsible for the debts and liabilities of the business LLCs generally have no ownership restrictions LLC members have flexibility in structuring the management of the company An LLC does not require as much annual paperwork, or have as many formalities, as a C corporation or an S corporation Written consent of LLC members must be obtained prior to increasing ownership in the company Potential customers may perceive an LLC as a more professional entity than a sole proprietorship or partnership Unlike a corporation, there is no annual reporting requirement with the Arizona Corporation Commission. Creating an LLC with Legal Resource Center:
Legal Resource Center provides a complete service in preparing and processing your LLC from start to approval. We will prepare your articles of organization, file them with the corporation commission, pick them up when they are approved and arrange for publication of the Notice. We will also provide you with a comprehensive operating agreement.
Fill out our easy-to-follow questionnaire. We will review the answers you provide for completeness and other common mistakes and prepare your Articles of Organization, Operating Agreement, Notice to publish, and organizational minutes. Upon completion of the required documents, we will present them to you for your review and approval. We will then process your Articles of Organization with the Arizona Corporation Commission, and publish the approved Articles. When we receive your approved Articles of Organization, we will forward them to you along with your other legal documents. Thereafter, simply follow our final instructions to wrap up the process.
