Every entrepreneur and person launching his or her own business in Northeast Ohio starts with a dream. Each dream is as different as the person behind it, but they all involve building and growing an enterprise that becomes a thriving and successful business. That takes hard work, vision, passion, and significant investments of time and money. But a small business dream can quickly turn into a waking nightmare if an owner fails to take the steps necessary to protect his or her personal finances from business risks and avoidable tax liabilities. This involves choosing and establishing the kind of business entity best suited to current circumstances, needs, and goals. For many small business owners, that entity is a limited liability company (LLC).
The business lawyers at King & Chavez in Elyria understand that your business is personal and that protecting it is of the utmost importance. With over four decades of experience, we can help you with every aspect of LLC formation and governance.
We see ourselves as true partners with small business owners, as invested in their companies’ successes as they are. You’ll see that commitment in the time we take to get to know you and learn about your business. You’ll see it in the meticulous documentation we prepare and the clear answers we provide to all of your questions. You’ll see it in our accessibility and responsiveness because we recognize that business issues don’t always arise during business hours.
Why You Should Consider an LLC for Your Small Business
Perhaps the most fundamental reason Ohio business owners form LLCs is to protect their personal assets from the reach of business creditors and shield them from other liabilities arising out of the operation of their business. With a properly formed and managed LLC, owners need not worry that a downturn or disruption in their business will put their homes, their savings, and their investments at risk.
LLCs also provide other benefits in addition to the protection of personal assets. LLCs are “pass-through” entities for tax purposes. That means business profits pass through the business entity and are taxed as the personal income of the owners. Specifically:
- If you are the sole member of your LLC, you are taxed like a sole proprietorship, which means you can attach a Schedule C form to your personal tax return.
- If your LLC has multiple owners, you can choose to be taxed as a corporation or a partnership.
By forming an LLC, you may also be able to establish a company health insurance plan that provides better benefits than you could get on the individual market.
Helping You Keep Your LLC Protection
One of the appealing things about a limited liability company is that, generally, managing an LLC involves fewer corporate formalities than Subchapter S corporations or regular corporations. But being too informal can lead to serious problems.
An LLC owner can lose the protections afforded by a limited liability company if he or she fails to comply with the legal requirements necessary to maintain the LLC, engages in fraudulent conduct, or conducts business affairs in such a way that there is no practical and actual distinction between him or her and the company. We work closely with our clients to ensure that they understand and meet their obligations and that they conduct their businesses in a manner that keeps their LLC protection intact.
King & Chavez, LLP: Elyria Business Lawyers
If you are a small business owner looking for partners who can add value, provide exceptional service, and give you the peace of mind that comes from knowing that experienced attorneys are protecting you, your business, and your family, please call us at 440-365-0386 or contact us online today.