Is an LLC the Best Choice for my Oregon Business?

We incorporate many new businesses under the Limited Liability Company (LLC) designation. There’s a good reason for that – there are a lot of advantages to turning your company into an LLC. Here are some:

• Flexibility. Most states allow Limited Liability Companies to register an operating agreement to define relationships between it’s members and operations different from traditional businesses.
• Two Types of Management Possible – LLC’s day to day operations can be managed by either members or managers.
• The LLC is a separate entity from owners, members, managers. If sued -t he business is sued, not the individuals.
• Members and managers can lose no more than their investment in the company, they are classed with the same limited liability that shareholders, directors and officers of the company have.
• Members personal assets: Savings, homes, vehicles, etc are protected from legal action (in most cases).
• An LLC isn’t limited in the type of business it can engage in. Of course the business must be for lawful purposes.
• LLC’s enjoy flexibility in number of members – which can range from one to thousands.
• Members of LLC’s aren’t limited to individuals. Corporations, partnerships and trusts can also become members of Limited Liability Companies.
• Interests in LLC’s can be freely transferred in most US States.
• Most states permit the free transferability of interests in LLC’s.
• Member meetings not required.
• There is substantially less administratively to do for LLC’s than for other corporations.
• LLC’s can choose between being taxed as a corporation or like an S Corporation.
• LLC members can have multiple classes regardless of their investment. Each class can have specific voting weight, shares of profits and losses and distribution.
• LLC’s get more respect than either a sole proprietorship or a partnership.
• LLC’s can get funding easier than an unincorporated company.

There are many advantages of choosing a LLC for your corporate business structure. Don’t neglect to look at traditional for-profit companies and the subchapter s (S-Corp) designation too.