Your Personal Fortress

LLC (Limited Liability Company)

What is an LLC?`

LLC stands for “Limited Liability Company.” It is a state specific entity that gives state level name exclusivity, personal liability protection, and separation of business and personal assets. They were first used in Wyoming in the 1970’s and have gained popularity throughout the country.

Who can own an LLC?
LLC owners are called “members.” A member can be an individual person, a legal entity such as a corporation or another LLC, or a trust. Most states also permit “single-member” LLCs, which means that the LLC only has one owner. An LLC is managed by either the “members” or “managers” who are delegated officials in the LLC with no stake of ownership but run day to day operations in the organization.

What An LLC Can Do For You:

• Personal asset protection. An LLC provides its owner or owners with limited liability. An LLC will give you a separation of business/personal assets. Generally speaking, LLC debts and lawsuits are typically separate from the owner. However, if LLC formalities are not maintained by the owner such as filing annual reports, and maintaining a separate business bank account to name a few; then this protection can be lost.

• Structure. An LLC has members that are the owners. Their ownership can be allocated in either units (like stock shares) or percentages. For management, it will be either members or managers delegated to run the business with no ownership stake. One can also have a combination of both running an LLC. Some states will ask on the articles for this. You can reference on master sheet if it is listed with the secretary of state.

• Flexibility. LLCs provide enormous flexibility when it comes to ownership, management, and taxation. The LLC remains a pass-through entity, with profits passed through the business to the owners to be taxed at their individual tax rates.

• Credibility. Forming an LLC to own and run a business helps gives credibility because an official business name is required and used.