For a few decades now, people setting up business entities have had an alternative to sole proprietorships, partnerships and corporations. It’s called a Limited Liability Company or LLC and it has become the organization of choice for most small businesses.
An LLC is one of the simpler business entities to form, often with as few as three sheets of paper. If several people are involved, an operating agreement is recommended, which is a private contract to define rights and responsibilities among the owners, who are called members. The members also may choose how to be treated for tax purposes: As a C-corporation or as a partnership with pass-through income.
While the paperwork is simple, the decisions are critical and often warrant professional advice. Clint W. Smith, PC is here to help with those decisions.