Tag: LLC Formation

LLC Formation refers to the process of establishing a Limited Liability Company (LLC), which is a business structure that combines features of both corporations and partnerships. An LLC provides its owners, known as members, with limited liability protection, meaning they are typically not personally responsible for the debts and liabilities of the company. The formation of an LLC typically involves selecting a unique business name, filing the necessary articles of organization with the appropriate state authority, and paying any required fees. Additionally, members may draft an operating agreement that outlines the management structure, profit distribution, and operational procedures of the LLC. LLCs can offer tax flexibility, as they can choose to be taxed as a pass-through entity or as a corporation, depending on the owners’ preferences. Forming an LLC is often a popular choice for small businesses due to its relatively simple setup and protective features.