LLC Lawyer San Diego
What is an LLC?
LLC stands for Limited Liability Company and it is currently the most popular form of business entity. LLCs protect their owners from personal liability like corporations do, but they also have other benefits.
Advantages of an LLC:
Pass-Through Taxation – Taxes for LLCs are paid through your personal tax return, not a separate tax filing. This prevents you from being “double taxed” (as some types of corporations are).
Ownership Options – Some business entities, such as an S-Corporation, are limited by who can be an owner or shareholder and how many they can have, but LLCs do not have those limits. This means your business can be owned by multiple people, companies, or even other LLCs!
Freedom – The owners of LLCs are not bound by boards of directors or the whims of shareholders. Deciding how you want to run your business or distribute profits is ultimately up to you, but it’s a good idea to get advice from an LLC lawyer San Diego when making big financial decisions so that you provide the most benefit to your business.
Disadvantages of an LLC:
While LLCs are a fantastic type of business entity with few downsides, there are a few disadvantages that may dissuade you from registering your business as an LLC. Here are some disadvantages to choosing this business entity:
Investors – Many startups are looking for investors in order to get their feet off the ground. While you can certainly still obtain funding with an LLC, it is typically more difficult to attract investors because other types of corporations offer lower risk and stock options.
Stock Options – The owners of LLCs cannot offer stock options, meaning you cannot bring your company public without changing the type of business entity that it is. An LLC lawyer San Diego can help you identify whether stock options would be beneficial for your business goals and if an LLC makes sense.
Self-Employment Tax – Remember how LLCs offer pass-through taxation so that your business is only taxed once on your personal tax return? Well this saves you having to pay double the taxes, but because it’s on your personal tax return you’ll also have to pay self-employment taxes. These can add up.
An LLC lawyer San Diego can help you determine if an LLC is right for you based on your business goals. They can help you fill out the forms you need to start a legal LLC like filing Articles of Organization, preparing an operating agreement, finding a registered agent, and getting an EIN. An LLC lawyer San Diego will also be there for you if there are any business conflicts down the line. If you’re looking for an experienced business attorney to help you form an LLC the right way, contact us at Kris Mukherji Law Office.