In Tucson, many people form an LLC for their small business or sometimes for their rental properties. Benefits include more flexibility, more tax options, limited liability and more!
What is an LLC?
A limited liability company is a hybrid type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership.
The “owners” of an LLC are referred to as “members.” Depending on the state, the members can consist of a single individual (one owner), two or more individuals, corporations or other LLCs.
Benefits of an LLC Include
- More flexibility: Although a limited liability company must file articles of organization with the state, it has a more flexible management structure than a corporation. The flexibility evolves from the phrase “unless otherwise provided for in the operating agreement.” This allows business owners to create a structure tailored to the business owner’s requirements.
- Limited liability: As its title suggests, the LLC protects owners and shareholders from personal liability in case of judgments or debts against the business.
- Tax options: An LLC can choose whether it wants to be taxed as a sole proprietorship, partnership, S corporation, or corporation.
- Fewer compliance issues: In most states, an LLC doesn’t need to have an annual meeting, and the LLC isn’t required to have a board of directors. Plus, there’s less paperwork and record keeping required compared to a corporation.
- Perpetual existence: Like a corporation, an LLC has a life of its own and can continue to exist after the owners sell their shares or die.
- Investors: Much like a limited partnership, members of an LLC can be investors only and have little or no say in the daily operation decisions of the business, as long as this is stated in the operating agreement.
Hoyt and Associates can help you get your LLC started today!
Our Price to form an LLC in Tucson starts at $395.00*
To get started with the many benefits an LLC can provide contact us today for an appointment.
*Prices do not include court fees, serving fees, credit reports, or publishing which will vary according to case
We are not attorneys & cannot provide you with legal advice or representation. No information contained on this website or received from Hoyt & Associates, LLC should be considered legal advice in any way. If you need or want legal advice please consult an attorney.