Denver Limited Liability Companies Lawyer
Limited liability companies (LLC) have a multitude of uses and benefits. They can be used not only for business planning purposes but also as estate planning and asset protection tools. Brady, McFarland & Lord, LLC, can help you create an LLC that accomplishes your specific goals. Call our Denver limited liability companies lawyer at (303) 420-2863 or contact us online for a free initial interview.
Why You Should Hire a Denver Limited Liability Companies Lawyer to Help Create an LLC
Most people believe that creating an LLC on their own is very simple and that it would be a waste of money to hire an attorney to do it for them. While it’s certainly something you can research and attempt to do on your own, it’s important to consult with a lawyer so you don’t miss any vital legal liabilities when you initially set up the company. For the following reasons, it would be wise to have an attorney help you set up your LLC:
Complicated Business Formation
If you were previously the sole owner of a small business, you might think you know enough to form an LLC on your own. However, in more complex situations, for example if you own the business with many other people, or if you have foreign investors who own a part of the company, it will be necessary to have an attorney set up the LLC for you.
Contracts & Operating Agreement
Anytime you start a business, many different types of contracts will be required to govern the proper running of the company. Employee/supplier relationships, shipping concerns if applicable, and even potential international relationships may have to be dealt with. An LLC Lawyer can ensure that everything in the contracts is valid and enforceable, and that they are executed properly. Trying to save a little bit of money upfront often costs business owners much more down the line because of mistakes that are made. When you set up an LLC, you will have to draw up an operating agreement. An operating agreement is a legal document that sets forth the ownership and member duties of the LLC. There are a lot of terms and conditions that need to be included in any operating agreement that an experienced lawyer can assist you with. Otherwise, costly legal disputes are bound to come up in the future.
The Many Benefits of an LLC
There are many benefits to a limited liability company (LLC). One of the main advantages is that an LLC allows you to transfer the ownership of certain assets while still maintaining control of them. This offers you multiple benefits, including:
1. Limited Personal Liability
If you own your business in your own name, you and your business are considered the same ‘person.’ This means that any personal debts are also considered business debts, and vice versa. If someone files a lawsuit against you or your business, they can attach all of your personal as well as your business assets. Putting your business into an LLC allows you to separate your business assets from your personal assets, providing a layer of protection.
2. Less Paperwork
When you create an LLC for your business, it can make things a lot easier than if you had created a “larger” corporation. Corporations offer a layer of protection, but there are more requirements and more paperwork. For example, corporations generally have to hold annual shareholder meetings and create annual reports. Think of an LLC like a mini corporation with far less requirements in the general makeup of the company. This doesn’t mean it’s less complicated, though. Why skimp on a small legal charge to help you create your LLC properly? It will save you much more than those small initial costs in the long run.
3. Tax Advantages
LLCs can take advantage of pass-through taxation, meaning the LLC is not required to pay LLC or corporate taxes. Rather, the LLC’s income and expenses are passed through to the owners’ personal tax returns. This means the owners pay income taxes on anything the business earns, but the company does not have to pay corporate income taxes. Corporations essentially have to pay taxes twice. They pay once at the corporate level, and then again at the personal level. When you incorporate your business as an LLC, you are only taxed on the personal level, which saves you and the business money.
While S-corporations can take advantage of pass-through taxation, there are a lot of requirements they have to abide by. For example, they can’t have more than 100 shareholders and can’t include foreign shareholders. LLCs provide extra flexibility, as there are no similar restrictions on the number of shareholders or types of owners.
Additionally, corporations have a much more rigid management structure, consisting of a board of directors who must oversee company policies, and officers who run the day-to-day business. LLCs are not required to use this structure and can be much more flexible. LLCs offer more choices in regards to how the business is run and how decisions are made.
If you have a family-owned business, you might consider a family limited liability company (FLLC), which allows you to share a certain portion of your business with younger generations or other family members without giving up control. Consult with our lawyers to determine if this option is right for you.
Schedule a Free Consultation With Our Denver Limited Liability Companies Attorney
We can help you determine if an LLC might be a useful tool for you. For more than 21 years, Karen L. Brady has dedicated her firm to helping businesses and individuals in the Greater Denver, Jeff Co, and Front Range areas with their estate and business planning needs. As an experienced Denver business planning attorney, she strives to foster a long-term relationship with our clients and assist them with their changing legal needs for years to come. To schedule a free consultation, contact our firm online or call us at (303) 420-2863.