An LLC is a legal entity that can help shield the owners who participate in the management of the business (called members) from facing personal liability in the event of bankruptcy or a lawsuit. It is often referred to as a hybrid between a corporation and a partnership for this reason and is a popular choice due to its greater operating flexibility and generally desirable tax rules. Additionally, LLCs are easy to maintain, which makes them more desirable to entrepreneurs who are busy with starting businesses from the ground up. Together, these are the main benefits, but others exist as well:
- Deduction of operating losses favors owners
- Membership interests can be placed in a living trust and are very flexible
- No ownership restrictions, and owners can participate in the management of the business
- Fewer corporate formalities and only moderate administrative fees
- Pass-through tax rules
To receive these benefits, LLCs must pay incorporation fees and keep certain required records. Often, these tasks are a small price to pay for flexibility and limited liability.
Experienced Help Is Important
To successfully set up an LLC, you need to have expertly crafted Articles of Organization, Operation Agreement (Bylaws), Member Control Agreement and written documentation of compliance with corporate formality. It is extremely important to carefully draft these documents with proper wording and correct language, which prevents potential costs and hindrances and ensures the smooth operation of the business. Experienced legal help can draft these documents and complete other paperwork that must comply with specific state laws, which are often overlooked.
Contact a Minnesota LLC Incorporation Attorney
Vlodaver Law Offices, LLC has helped dozens of businesses incorporate as an LLC in the State of Minnesota. Royee Vlodaver is also your trusted advisor for establishing your new business in almost any field and will be with you through every step of the process. Establishing an LLC can be done for a flat fee; we are confident in our work. Please contact us for a free consultation if you are thinking about incorporating your business as an LLC in Minnesota. Also check out our testimonials, which show our past Minneapolis and St. Paul clients’ satisfaction.