Why choose a Limited Liability Company?
LLC's provide limited liability protection to their owners (called members). Typically, owners are not personally responsible for business debts and liabilities of the company so creditors cannot pursue owners’ personal assets to pay business debts. This type of company can not issue shares to create capital for the business nor has the ability to elect a board of directors.
Advantages of Forming an LLC
- Limited Personal Liability - Members of an LLC have very limited liability for the debts, obligations and actions of their company, meaning they can only be held to them if they have signed a personal guarantee.
- Pass Through Taxation - Although LLCs exist as separate entities, their earnings are not taxed at a corporate level. Any income or loss is reported on members' personal tax returns. This helps them avoid the issue of double taxation faced by C corporations, which have earnings taxed both at the corporate level and on the personal tax returns of their owners.
- Ownership Flexibility - Forming an LLC gives the parties involved a flexible ownership structure that doesn't set limitations on who can be involved. The company can have any number of members, which can include individuals, corporations, foreign entities or even other LLCs.
- Disproportionate Profit Distribution - LLCs also allow members to be flexible in how they split up the company's earnings. This means that profits and losses do not need to be given out according to how much of the company each member owns.
- Relaxed Reporting Requirements - Starting an LLC allows members to avoid many of the corporate formalities of other business entities. While LLCs do have some reporting requirements, they have less annual paperwork and aren't required to keep minutes or hold annual meetings.
Disadvantages of Forming an LLC
- Unattractive to Outside Investors - While LLCs are an attractive format for many types of small businesses, they are not designed for companies that expect to grow significantly or work with venture capital investors. LLCs that do decide they want to pursue outside investment may want to convert their businesses into C corporations.
- Differing Treatment Across State Lines- Because many states have different regulations surrounding LLCs, companies that operate in multiple states may not get consistent treatment.
- Limited Life - The existence of LLCs is not necessarily perpetual, and some state laws require that they be dissolved after a specific length of time (generally 30 to 40 years). The company technically dissolves when one of its members leaves.
- Unavailable for Some Businesses - Certain types of businesses, such as banks and insurance companies, are not allowed to form LLCs.
Package includes: Administrative, Federal & State Registration Fees...
- FEIN: Federal Employer Identification Number (Optional)
- Name Reservation
- Letter of Intent
- Articles of Incorporation
- Corporate Kit
- Turnaround Time 7-10 Business Days
- Shipped Priority Mail
- Membership Retainer (2 Hr. with Assigned Consultant)
Expedited Processing of Document Filings:
Any Domestic or Foreign Corporation, Limited Partnership, or Limited Liability Company Filing:
A document submitted to the GA Secretary of State (Only) for expedited filing will be reviewed and a filing response
indicating whether the document has been filed or rejected will be sent to the filer or contact person within
the time frame of the requested level of expedited service. The expedited fee is in addition to the regular
filing fee associated with the document type or service requested. The expedited review period is during
business hours only, and excludes weekends and state holidays.
- Regular Expedited Service $200.00
Review completed and a response sent to the filer within 48 hours after receipt,
excluding weekends and state holidays.
- Same Day Expedited Service $500.00
Review completed and a response sent to the filer the same day as receipt.
Same day expedited processing service requests must be received by the
Division by noon of a business day. Documents received after noon will be
reviewed by noon on the next business day.
- One Hour Expedited Service $1,500.00
Review completed and a response sent within one hour of receipt. One hour
expedited processing service requests are reviewed on business days between
9:00 a.m. and 4:00 p.m. Documents received outside of these business hours will
be reviewed on the next business day starting at 9:00 a.m.
The name, email address, and telephone number of a person authorized to make
corrections and to whom any questions regarding the document or service
requested may be directed must be provided.
Disclaimer: Crim Group is not an attorney or law firm and does not provide legal advice. Nothing in this information is intended nor should it be considered legal advice. We are not attorneys, we offer Legal Document Preparation to the public at their specific direction.