Limited Liability Company, LLC, Attorneys in Scottsdale – Magellan Law
A Limited Liability Company (LLC) is a business structure that allows a business to operate as a separate legal entity. An LLC can get a tax number, open a bank account, and do business under its own name. It also shields the business owner from creditors of the business. It provides flexibility in terms of how it is taxed, and how other owners or investors can be brought in. Compare this to a sole proprietorship, which simply links the business with the owner. What does this mean? If an LLC defaults on a loan or payment, the bank cannot come after the members of the LLC because the members don’t have legal responsibility for the debt.
Limited Liability Companies have tax benefits and are not as rigid as a corporation, yet still provides the same protection as a corporation. LLCs are very popular, and rightfully so.
Should you hire an attorney to set up your Limited Liability Company or should you find a DIY kit? We always suggest having an attorney review any legal documents you are filing with the court. An online forms package often doesn’t provide all of the benefits that are available in Arizona, or whatever your particular state is. That’s because DIY kits or form packages focus merely on complying with the laws of all states, rather than addressing issues that arise in each state or taking advantage of the opportunities that a particular state’s laws offer. These documents will be part of your legal records and you want to make sure your business is set up properly. If you choose to create a limited liability company without an attorney, please contact us afterwards to review what you have recorded, and we can discuss any other business planning documents you may need.