Forming as a limited liability company (or LLC) has many advantages, some of which are business related and some legal. First, there are advantages in regards to the reputation and marketing of your company set up as an LLC. Having “LLC” tacked onto the end of your own business name is an important step in gaining the professional trust of competition and clients. Creating an LLC also generally involves less paperwork than setting up a traditional corporation. Moreover, because of the “Pass-Through” status of the LLC business, there is no need to prepare extra tax forms for the company. Generally, you will only need to prepare your own tax forms. Also, with an LLC, there is no need for formal meetings and minutes, which are required with a corporation. LLCs also have some advantages to the family business or business owner who wants to build his or her family’s wealth without raising his or her own taxes. LLCs are also easier entities to transfer within the family, perhaps on to the next generation.

However, as with all types of business entities, there are advantages and disadvantages to setting up your enterprise as an LLC. It is important to discuss all these with an experienced corporate attorney. Alan Geraldi has such experience. As the former general counsel to the American division of a major international company, he is well versed in all aspects of business formation. To learn more, contact him at (925) 236-0045.