The primary benefit of this form of business entity is that its members are protected from personal liability, yet profits and losses can pass directly to the members without the LLC entity being taxed separately, just as with a partnership.
There can be an unlimited number of members in an LLC company. The company can be managed directly by its members or the members can designate a manager.
A registered agent – someone who is responsible for receiving any legal documents on behalf of the LLC – needs to be designated. In most cases the registed agent can be the business owner (manager) as long as the designee is located within the same state in which the LLC is established.
An LLC is easier and usually less expensive to establish than a full (C) corporation. Unlike both C and S corporations, annual meetings are not required to be held by its members.
A number of firms advertise relatively inexpensive LLC packages in which they handle taking care of the paperwork. Always be sure to work with a reputable attorney.
