If you are considering forming a limited liability company (LLC), you may want to see a business lawyer Memphis, TN professionals trust to walk you through the process. An LLC is a business structure that allows the simplicity of a sole proprietorship while offering the limited liability protections that comes with corporations. If you are considering an LLC for your business, your Memphis business lawyer may be able to tell you the implications of your choices.
Some state laws prohibit certain professionals from joining together to form an LLC, and a business lawyer in Memphis, TN may let you know what your state limits. Generally, insurance, trust, and banking businesses aren’t allowed to form an LLC. Other professionals, such as lawyers, doctors, and accountants, may be exempt as well.
Any business lawyer Memphis, TN has to offer may tell you that you could form an LLC as the sole member, but this may require extra care. You may easily be considered a sole proprietorship instead, forfeiting the benefits of an LLC.
Pass-through taxation is one of the benefits of an LLC. It allows the profits and losses of the business to pass through to the owners of the LLC. To put it simply, an LLC isn’t seen as a simple tax entity like a corporation would be. A business lawyer Memphis, TN can provide may help you decide if you want to take on the taxes of the LLC in this way.
You might choose to have your LLC taxed as a corporation (instead of passing the taxes through yourself) which is something you may want to discuss in more detail with your lawyer and accountant.
You may want to form an LLC if you are doing business that puts you at risk for being sued. Additionally, if your business may have large amounts of debt, you may want to form an LLC to shield your personal assets from debt collectors if things should go wrong.
A business lawyer Memphis, TN trusts may also tell you that if you are starting your business with a lot of personal assets, you might want to create separation between you and the business with an LLC. This could help in the future if something should go wrong or you should be sued, your personal assets won’t be at risk.
To form an LLC, your state has a certain process you must follow to establish the business and file important documents. If you are looking to form an LLC in Tennessee, you may want to work with a Memphis business lawyer to help you get everything completed and filed properly so your LLC is ready to operate.
Forming an LLC isn’t necessarily a complicated task, but you may want to get advice and legal counsel prior to doing so. A qualified lawyer may help you determine if this is the best decision for you, and that everything is done properly according to your state’s law. Call a business lawyer Memphis, TN businesses depend on at Patterson Bray by calling 901-372-5003 today.